Patton Fuller Financial Analysis
Financial Data Analysis
Patton Fuller Community Hospital is a for profit organization. The organization is committed to providing quality and service to their patients. Its organization is owned by a group of active physicians that can provide care approximately to 600 patients in a full service environment. As Finkler and Ward mention every health care organization should show signs of profit in order to purchase the newest technologies and be able to be compete (Finkler & Ward, 2006).
Patton Fuller has provided a financial statement also known as financial audit. According to Gapenski a financial statement shows the financial history of an organization through a cash flow statement, income statement and the balance sheet (Gapenski, …show more content…
Patton Fuller financial statement shows significant difference from 2008 to 2009.
Based on the audit performed for Patton Fuller Community Hospital, auditors indicate that there was a 10% increase in patient revenues as well as other revenues. This could probably be contributed to an increase in patient visits and admissions to the hospital. Based on the observance of the audited form submitted it is noted under the expenses that Patton Fuller Community Hospital experienced many increases. The supplies line item experienced a 5% increase, which totaled 3,238. The cause of such an increase could easily be associated with the increase of patient visits and there admittance. This is merely an observation as there is no direct communication related to this line item or correspondence that we could assert for assurance and accountability as we pursued the statement at hand. Upon perusal of the audited financial document there was an overwhelming increase in the depreciation and amortization line items, which produced a shocking 44% rise from its previous year. The cause of this could be direct …show more content…
Many medical organizations with average patient accounts receivable that are greater than a specified amount, not including the allowance, must compute and record an Allowance for Doubtful Accounts on their balance sheet. This accounts receivable balance should be re-evaluated on an annual basis to determine reporting status. Often, it is not known which specific accounts receivable invoices will be uncollectible. An allowance is therefore established to estimate the value of those receivables believed to be uncollectible. This entry should be “recorded so the income statement and balance sheet are fairly stated at the amount expected to be collected in receivables, thus satisfying the matching principle. The entry creates a contra accounts receivable balance. When netted against the gross total of accounts receivable, the true value of the receivables is reported” (FMS,
Patton Fuller Community Hospital is a for profit organization. The organization is committed to providing quality and service to their patients. Its organization is owned by a group of active physicians that can provide care approximately to 600 patients in a full service environment. As Finkler and Ward mention every health care organization should show signs of profit in order to purchase the newest technologies and be able to be compete (Finkler & Ward, 2006).
Patton Fuller has provided a financial statement also known as financial audit. According to Gapenski a financial statement shows the financial history of an organization through a cash flow statement, income statement and the balance sheet (Gapenski, …show more content…
Patton Fuller financial statement shows significant difference from 2008 to 2009.
Based on the audit performed for Patton Fuller Community Hospital, auditors indicate that there was a 10% increase in patient revenues as well as other revenues. This could probably be contributed to an increase in patient visits and admissions to the hospital. Based on the observance of the audited form submitted it is noted under the expenses that Patton Fuller Community Hospital experienced many increases. The supplies line item experienced a 5% increase, which totaled 3,238. The cause of such an increase could easily be associated with the increase of patient visits and there admittance. This is merely an observation as there is no direct communication related to this line item or correspondence that we could assert for assurance and accountability as we pursued the statement at hand. Upon perusal of the audited financial document there was an overwhelming increase in the depreciation and amortization line items, which produced a shocking 44% rise from its previous year. The cause of this could be direct …show more content…
Many medical organizations with average patient accounts receivable that are greater than a specified amount, not including the allowance, must compute and record an Allowance for Doubtful Accounts on their balance sheet. This accounts receivable balance should be re-evaluated on an annual basis to determine reporting status. Often, it is not known which specific accounts receivable invoices will be uncollectible. An allowance is therefore established to estimate the value of those receivables believed to be uncollectible. This entry should be “recorded so the income statement and balance sheet are fairly stated at the amount expected to be collected in receivables, thus satisfying the matching principle. The entry creates a contra accounts receivable balance. When netted against the gross total of accounts receivable, the true value of the receivables is reported” (FMS,