Patton Fuller

Topics: Income statement, Generally Accepted Accounting Principles, Balance sheet Pages: 3 (878 words) Published: August 1, 2011
Patton-fuller community hospital case study
Abstract

Finance, understanding how it affects the smallest business to the largest organization, is the origin to financial success in businesses. According to Gitman (2006), finance is the art and science of managing money. Virtually every individual business and large organization, Be the organization for profit or non-profit, depends on the rates at which these entities earn, or raise money, and the rate at which they spend or invest these earned monies. Understanding these financial processes will enable the financial manager, or even the non-financial managers to more effectively interact with financial personnel, processes, and procedures.

Patton-fuller community hospital case study
How did the audited and unaudited financial statements differ? The differences between the audited and unaudited sections of the financial statements are strikingly different. According to Patton-Fuller © 2011, it appears the financial officer had severely over-estimated the prospectus in payment remittances, giving the impression that the organization would be doing a lot better than the actuality. When providing numbers for accounts receivable in 2009 the financial officer estimated the total at (totals shown in the thousands) $59,787, with a net allowance for bad debt for the same time-period at $10,757 while the audited version shows a very different picture. Accounts receivable for 2009 revealed a total $58,787, a one million dollar lower receivable difference. In addition, the net allowance for bad debt is shown at, $11,757, a one million dollar increase. The differences showing the audited amounts appear to show a vast difference. In addition, reveal a two million dollar deficit, from the unaudited version. This difference could in time cause the falter of the organization. In addition, the statements of revenue and expenses show major differences revealed between the audited and unaudited. These differences...

References: Gitman, L., (2006). Principals of managerial finance, Addison, Wesley, Pearson; Education Publications, p. 4.
(2000-2011).Accounting Principles I: T Accounts-Cliff-Notes Retrieved from topic Articled-21081,articled-21009.html
http://www.cliffsnotes.com/study_quideT-Accounts
Patton-Fuller community hospital resource: Copyright © 2006, 2010, 2011 by Apollo Group, Inc.
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