Team C Week 3 Financial Statement Review
Tamara Harrell, Samara Holmes, Brittany Naron, Jennifer Turner
May 25, 2015
How did the audited and unaudited financial statements differ?
The audited and unaudited financial statements differ in many ways. One way was the unaudited balance sheet did not provide the specific date when the balance sheet was prepared while the audited balance sheet stated the date clearly at the top of the page. Another way they differ was if you look at the Total Liabilities and Equity in 2009, the unaudited balance sheet states the total as $588,767, while the audited balance sheet states $587,767. When you subtract the difference the unaudited was 1,000 dollars off. In 2009, the unaudited balance sheet for the total current assets was $128,867 while in the audited balance sheet the total for current assets is $127,867. The audited balance sheets include the adjustments that go through the auditing process unlike the unaudited balance sheets.
What is the effect of revenue sources on financial reporting at the hospital?
According to "The American Accounting Association Digital Library" (2015), "revenue is the monetary expression of the aggregate of products or services transferred by an enterprise to its customers during a period of time". Measuring The Patton-Fuller Hospital financial performance is commonly performed by analyzing margins. This is the difference in revenue vs. expenses. Margins can be expressed by using financial ratios and as dollar amounts. The two financial ratios are to measure a hospital’s financial performance. Both ratios compare the revenue received by a hospital against its operating expenses. To raise more revenues, Patton-Fuller hospital might have provided more credit to clients and also more investment in inventory and fixed assets to enhance the hospitals revenues. The increase in current assets and fixed assets is financed by debt. This is clear from increase in accrued