Hcs/405 Financial Statement Analysis
Financial Statements Review
Health Care Financial Accounting-HCS/405
May 4, 2015
Facilitator
Introduction
It is essential in any business, not just health care to understand how finances directly affect the growth, success and longevity of the business and all its parts. To truly understand how finance affects business it is important to gain knowledge and understanding of how the business generate revenue ,the cash flow of money that comes into the business, how bills are paid and money leaves the business and how investments are made in the business that can directly and indirectly impact the financial growth of the organization. In health care organizations there are different factors that come into play in the financial department …show more content…
The audited report includes the company’s history, a CFO report, a message from the CEO, and a report of independent auditors. The audited and unaudited financial statements differ slightly in data in some areas for Patton- Fuller Community Hospital. Under the assets section in the numbers for patients accounts receivable numbers differ slightly from 2009. In 2009 on the unaudited report it provides the data of 59,787 and on the audited it has 58,787. This also leaves the total current assets and the total assets to differ slightly for 2009. On the audited report total current assets for 2009 are 127,867 and on the unaudited report it has 128,867. On the unaudited report the total assets for 2009 are 588,767 and 587,767 on the audited. Under the total liabilities calculations the retained earnings for 2009 differ slightly. The data for 2009, on the unaudited report gives 126,564 while the audited report gives …show more content…
Patton-Fuller Hospital groups all revenues into two categories for planning and control, the first category is net patient revenue, and the second is other revenue. Other revenue can be broken up into sub categories like revenue from assets, capital, and stock but I believe the idea of bunching them together is so it is easier to stay organized. This gives managers a clear picture as to what type of services are receiving the most income and causing the most expenses and designed to make it easier to calculate the total net revenue from the two main sources. Expenses are broken up a little further in the financial statements; expenses are broken up by salaries and benefits, supplies, physician and professional fees, utilities, other expenses, depreciation & amortization ("non-cash" expenses), interest, and provision for doubtful accounts. Provision for doubtful accounts would also include any changed due to being audited. These are broken up further to show where the money goes each financial period for future planning and helping to predict future expenses; this information can assist a manager in planning future budgets and in making financial adjustments to increase revenue and decrease
Health Care Financial Accounting-HCS/405
May 4, 2015
Facilitator
Introduction
It is essential in any business, not just health care to understand how finances directly affect the growth, success and longevity of the business and all its parts. To truly understand how finance affects business it is important to gain knowledge and understanding of how the business generate revenue ,the cash flow of money that comes into the business, how bills are paid and money leaves the business and how investments are made in the business that can directly and indirectly impact the financial growth of the organization. In health care organizations there are different factors that come into play in the financial department …show more content…
The audited report includes the company’s history, a CFO report, a message from the CEO, and a report of independent auditors. The audited and unaudited financial statements differ slightly in data in some areas for Patton- Fuller Community Hospital. Under the assets section in the numbers for patients accounts receivable numbers differ slightly from 2009. In 2009 on the unaudited report it provides the data of 59,787 and on the audited it has 58,787. This also leaves the total current assets and the total assets to differ slightly for 2009. On the audited report total current assets for 2009 are 127,867 and on the unaudited report it has 128,867. On the unaudited report the total assets for 2009 are 588,767 and 587,767 on the audited. Under the total liabilities calculations the retained earnings for 2009 differ slightly. The data for 2009, on the unaudited report gives 126,564 while the audited report gives …show more content…
Patton-Fuller Hospital groups all revenues into two categories for planning and control, the first category is net patient revenue, and the second is other revenue. Other revenue can be broken up into sub categories like revenue from assets, capital, and stock but I believe the idea of bunching them together is so it is easier to stay organized. This gives managers a clear picture as to what type of services are receiving the most income and causing the most expenses and designed to make it easier to calculate the total net revenue from the two main sources. Expenses are broken up a little further in the financial statements; expenses are broken up by salaries and benefits, supplies, physician and professional fees, utilities, other expenses, depreciation & amortization ("non-cash" expenses), interest, and provision for doubtful accounts. Provision for doubtful accounts would also include any changed due to being audited. These are broken up further to show where the money goes each financial period for future planning and helping to predict future expenses; this information can assist a manager in planning future budgets and in making financial adjustments to increase revenue and decrease