...Liquidity Ratios Current Ratio-Audited 2009 127,867/23,807= 5.37 2008 130,026/8,380= 15.52 Current Ratio-Unaudited 2009 128,867/23,807= 5.41 2008 130,026/8,380= 15.52 I disagree with the annual report because the audited and unaudited amounts are different and do not match on the financial statement. Quick Ratio-Audited 2009 81,782/23,807= 3.44 2008 79,517/8,380= 9.49 Quick Ratio-Unaudited 2009 81,782/23,807= 3.44 2008 41,851/8,380= 9.49 I agree with the annual report because both the audited and the unaudited amounts remained the same with no negative amounts. Days Cash on Hand (DCOH)-Audited 2009 148,559/9,198= 16.15/365= 0.04 2008 376,886/4,185= 90.06/365= 0.25 Days Cash on Hand (DCOH)-Unaudited 2009 149,559/9,198= 16.26/365= 0.04 2008 376,886/4,185= 90.06/365= 0.25 I agree with the annual report because both the audited and the unaudited amounts remained the same with no negative amounts. Days Receivables-Audited 2009 59,787/459,900= 0.13/365= 0.0004 2008 37, 666+87/418,509=0.09/365= 0.0002 Days Receivables-Unaudited 2009 59,787/459,900= 0.13/365= 0.0004 2008 37, 666+87/418,509=0.09/365= 0.0002 I agree with the annual report because both the audited and the unaudited amounts remained the same with no negative amounts. Some of the amounts on the audited financial statement and the unaudited financial statement were different and did not match but several thousand dollars. The Patton-Fuller Community hospital needs to hire a financial...
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...Patton-Fuller Ratio Computation July 8, 2013 HCS/405 Regina Robinson The Eight Basic Ratios 1. Current Ratio (Unaudited) 2009 Current Assets $128,867 ÷ Current Liabilities $23,807= 5.4129877 or 5.413 (5 to 1) 2008 Current Assets $130,026 ÷ Current Liabilities $8,380 = 15.516229 or 15.516 (15 to 1) Current Ratio (Audited) 2009 $128,867 ÷ $23,807= 5.3709833 or 5.371(5 to 1) 2008 $130,026 ÷ $8,380= 15.516229 or 15.516 (15 to 1) Disagree: This ratio is consistently a measure of short-term debt paying ability (Baker & Baker, 2011). However, it must be carefully interpreted (Baker & Baker, 2011). Observationally, the CEO’s report to the board that all financial ratios have improved is inaccurate; in all actuality, the ratios have not. In effect, the numbers simply do not back up the declaration. The unaudited and audited current ratios show that in 2008 the hospital’s assets were greater than those in 2009 were. This ratio also shows the current assets in 2008 were much higher than the current liabilities for the same year, a ratio of 15 to 1. In 2009 the current assets to current liabilities ratio was only 5 to 1. The hospital’s assets were lower in 2009 and yet the liabilities in 2009 were higher. The hospital’s assets were higher in 2008 and the liabilities in 2008 were lower. This shows the hospital was more profitable in 2008, not 2009. 2. Quick Ratio...
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...Patton-Fuller Ratio Computation Patton-Fuller Ratio Computation July 8, 2013 HCS/405 Regina Robinson The Eight Basic Ratios 1. Current Ratio (Unaudited) 2009 Current Assets $128,867 ÷ Current Liabilities $23,807= 5.4129877 or 5.413 (5 to 1) 2008 Current Assets $130,026 ÷ Current Liabilities $8,380 = 15.516229 or 15.516 (15 to 1) Current Ratio (Audited) 2009 $128,867 ÷ $23,807= 5.3709833 or 5.371(5 to 1) 2008 $130,026 ÷ $8,380= 15.516229 or 15.516 (15 to 1) Disagree: This ratio is consistently a measure of short-term debt paying ability (Baker & Baker, 2011). However, it must be carefully interpreted (Baker & Baker, 2011). Observationally, the CEO’s report to the board that all financial ratios have improved is inaccurate; in all actuality, the ratios have not. In effect, the numbers simply do not back up the declaration. The unaudited and audited current ratios show that in 2008 the hospital’s assets were greater than those in 2009 were. This ratio also shows the current assets in 2008 were much higher than the current liabilities for the same year, a ratio of 15 to 1. In 2009 the current assets to current liabilities ratio was only 5 to 1. The hospital’s assets were lower in 2009 and yet the liabilities in 2009 were higher. The hospital’s assets were higher in 2008 and the liabilities in 2008 were lower. This shows the hospital was more profitable...
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...Patton-Fuller Community Hospital Ratio Computation 2009 and 2008 This paper will show the ratio computations to Patton-Fuller Community Hospital. From these computations, taken from the Unaudited and Audited Reports from 2009 and 2008, Team E will address significant changes, if any occurred, and address what Patton-Fuller Community Hospital plans are within the next year to five years regarding any changes. In closing this paper will address the reasons that our team agrees or disagrees with the CEO’s report presented to the Board. In addressing the ratio computations for 2009 and 2008, Unaudited and Audited reports, below, there were no significant changes between the two reports. From 2008 to 2009, the current assets decreased, but showed an increase in the hospital’s liabilities. This change affected the current ratio of the hospital, which was 15.51 to 5.41. The drop in net receivables and cash equivalents according to the ratio computations dropped which had caused a change in the quick ratio of the hospital from 9.49:1 to 3.44:1. In reference to the hospital’s operating costs What plans should the hospital Board make for next year and the next five years? After reviewing Patton-Fuller Community Hospital balance sheets, the balance sheets show that they break even at the end of the fiscal year. The hospital is currently making enough to cover the debts, which equals to no profit. The hospital’s Revenue needs to increase to avoid the debts of the hospital...
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...financial statements, annual report, and budget issue documents; The Patton-Fuller Community Hospital is no different. In this analysis we will look over and address all of the areas that affect staffing at Patton-Fuller. These areas will vary between the numbers of nurses to the number of patients as well as staff compensation from wages to raises. A comparison of two years’ worth of data while also using Trend Analysis will explain future budgeting aspects and the pros and cons to these decisions. Comparative data is an important tool for managers to use when analyzing data with consistency, verification, and unit measures to fully meet the requirements of understanding the reporting financial results (Baker, PhD, CPA & Baker, JD, 2011, "Chapter 14/Using Comparative Data"). Using Patton-Fuller’s 2008-2009 financial statements to provide a comparative analysis for their expenses that occurred within a 2 year period. Patton-Fuller’s balance sheet provides comparative analysis that total current assets of 130,026 in 2008, and other assets in 2009 of 128,867 decreased to a negative difference of (1159.00). Liabilities reported a gain in 2009 of 462,153 from 2008 213,450 a growth percentage of 46.19 gain. However, factoring the equity of 335,035 in 2008 to 125,564 in 2009 a percentage of 62.52 gain, the total liabilities and equity is the same percentage as current and other assets balancing the financial sheet. Patton-Fuller’s revenue and expense financial statement from 2008 to...
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...Statements The paper is a health care case study on Patton-Fuller Community Hospital’s financial statements. The summary of the paper is a review on the annual report financial statements at Patton-Fuller Community Hospital. A discussion on how the audited and unedited financial statements differ. An explanation will be discussed on the financial ratios for the hospital improving. The relationship between revenue sources and expenses on Patton-Fuller’s financial performance will be discussed. The effect of revenue sources on financial reporting at the hospital will be discussed. The hospital’s revenues and expenses grouped for planning and controlling will be explained. Audited & Unaudited Financial Statement Differences The balance sheet for the Patton-Fuller Community Hospital for the years of 2009 and 2008 appear to have a differences or discrepancy of $1,000,000 in the patient accounts receivable. On the 2009 unaudited statement there was $59,787,000 and on the audited statement there was $58,787,000 which accounts for the $1,000,000 difference (Patton-Fuller Community Hospital, 2011). Additionally, on the Statement of Revenue and Expense for years 2009 and 2008 there was a discrepancy of $1,000,000 in 2009. The differences or discrepancy appeared on the provision for doubtful accounts. The unaudited report showed $13,797,000 and the audited report showed $14,797,000 which accounts for the $1,000,000 difference (Patton-Fuller Community Hospital, 2011). This makes the net income...
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...Statements The paper is a health care case study on Patton-Fuller Community Hospital’s financial statements. The summary of the paper is a review on the annual report financial statements at Patton-Fuller Community Hospital. A discussion on how the audited and unedited financial statements differ. An explanation will be discussed on the financial ratios for the hospital improving. The relationship between revenue sources and expenses on Patton-Fuller’s financial performance will be discussed. The effect of revenue sources on financial reporting at the hospital will be discussed. The hospital’s revenues and expenses grouped for planning and controlling will be explained. Audited & Unaudited Financial Statement Differences The balance sheet for the Patton-Fuller Community Hospital for the years of 2009 and 2008 appear to have a differences or discrepancy of $1,000,000 in the patient accounts receivable. On the 2009 unaudited statement there was $59,787,000 and on the audited statement there was $58,787,000 which accounts for the $1,000,000 difference (Patton-Fuller Community Hospital, 2011). Additionally, on the Statement of Revenue and Expense for years 2009 and 2008 there was a discrepancy of $1,000,000 in 2009. The differences or discrepancy appeared on the provision for doubtful accounts. The unaudited report showed $13,797,000 and the audited report showed $14,797,000 which accounts for the $1,000,000 difference (Patton-Fuller Community Hospital, 2011). This makes the net income...
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...for Patton-Fuller Community Hospital. This summary is a review of the annual report and financial statements and the differences between the audited and the unaudited statements. The financial ratios are examined to determine if there has been improvement from 2008 to 2009 and to explain the cause. This paper will also summarize the relationship between revenue sources and expenses and explain the effect of revenue sources on financial reporting. The summary will also determine how the hospital’s revenues and expenses are grouped for planning and control. Audited and Unaudited Financial Statements The balance sheets for the Patton-Fuller Community Hospital for the years of 2008 and 2009 appear to have a discrepancy of $1,000,000 in the patient accounts received. On the 2009 unaudited statement, there was $59,787,000 and on the audited there was $58,787,000 which accounts for the $1,000,000 difference. Additionally on the Statement of Revenue and Expense for years 2008 and 2009 there was a discrepancy of $1,000,000 in 2009. This discrepancy appeared on the provision for doubtful accounts. The unaudited report showed $13,797,000 and the audited shows $14,797,000 which accounts for the $1,000,000 difference. This makes the “net income” for the year (2009) $627,000 in the unaudited, and 373,000 in the audited statement. Financial Ratios The financial ratios for Patton Fuller Hospital are not improving according to liquidity, solvency, and profitability ratios. The...
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...Financial Data Analysis for Patton Fuller Community Hospital Bobbie Griffin HCS/577 April 16, 2012 Crystal Chilman University of Phoenix Patton Fuller Community Hospital This paper will analyze the for-profit organization, Patton Fuller Community Hospital, financial data and determine what happened to with the $1 million that Abigail left to the hospital after she passed. Patton Fuller is very dedicated into providing excellent services to their patients. This community hospital is owned by a group of practicing physicians with the aim of providing quality care to around 600 plus patients in a complete service setting. Finkler and Ward mentioned that all health care organizationought to demonstrate signs of revenue in order to obtain newer technology and be able to be compete with other organizations (Finkler & Ward, 2006). The community hospital provided a financial report also known as financial audit. Gapenski stated that a monetary report show the monetary account of an organization from beginning to end, a cash flow statement, income statement and the balance sheet (Gapenski, 2008). This statement identifies the financial stability of the organization and includes but not limited to the cash flow statements, income statement, and the balance sheet. The organization’s financial reports show a considerable differentiation between 2008 and 2009. Based on the examination performed for Patton Fuller Community Hospital, auditors...
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...Course Design Guide HCS/405 Version 5 1 Course Design Guide College of Natural Sciences HCS/405 Version 5 Health Care Financial Accounting Copyright © 2012, 2010, 2007, 2005, 2004, 2002, 1999 by University of Phoenix. All rights reserved. Course Description This course provides an understanding of the general principles of accounting applied in the health care environment. It includes an overview of sources of revenue for various health care entities. The fundamentals of financial planning, cost concepts, capital budgeting, and management analysis are applied in the health care environment. Issues surrounding the development and management of budgets are also examined. Policies Faculty and students will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student website to view this document. Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Baker, J. J., & Baker, R. W. (2011). Health care finance: Basic tools for nonfinancial managers (3rd ed.). Sudbury, MA: Jones & Bartlett Publishers. All electronic materials are available on the...
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...Are the financial ratios for the hospital improving? The Answer is: No There is a essential use and limitations of financial ratio analysis, One must keep in mind the following issues when using financial ratios: One of the most important reasons for using financial ratio analysis is comparability and for this, a reference point is required. Usually, financial ratios are compared to historical ratios of the business itself, competitor’s financial ratios or the overall ratios of the industry in question. Performance may be adjudged as against organizational goals or forecasts. A number of ratios must be analyzed together to get a true and reliable picture of the financial performance of the business. Relying on each ratio individually may not be a good strategy. Year-end values may not be truly representative of the actual performance of the business and hence, average values should be used when they are available. The limitations of accounting methods also apply to financial ratio analysis. The selection and application of accounting standards may result in different ratio values. Financial ratio analysis, in fact, has a great use in management accounting which differs from financial accounting in being an on-going, performance management exercise. This summary is a review of the annual report and financial statements and the differences between the audited and the unaudited statements. The financial ratios are examined to determine if there...
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...Health Care Cost Study: Financial Statements The Patton-Fuller Community Hospital has been serving the community since 1975; so handling financial statements are familiar with them. The discussion in this paper will enlighten what is the difference of audited and unaudited statements, the relationship between revenue sources and expenses on performance, and the effect of revenue sources on financial reporting. It will also discuss is the hospital’s revenues and expenses grouped for planning and control. The audited and unaudited balance sheets from the Patton-Fuller statements differ by the net allowance of bad debts and retained earnings, or unrestricted fund balance. The audited version of the balance sheet states that 2009 has a net allowance of $11,757 for bad debts and a net allowance of $7,533 for bad debts in 2008. The unaudited version of the balance sheet states that 2009 has a net allowance of $10,757 and a net allowance of $6,777 for bad debts in 2008. The difference between the two allowances may be because audited numbers require accuracy. The unaudited numbers may be estimations; however, the audited statements require exact numbers. The audited and unaudited balance sheets from the statements also differ by retained earnings, total liabilities, and equity. The audited balance sheets show $125,564 in retained earnings for 2009 and the unaudited balance sheets show $126,564 in retained earnings for 2009. This results in a thousand dollar difference...
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...2010 Operating Budget Projection HCS/577 29 July 2013 2010 Operating Budget Projection Based upon a review of the Patton Fuller Community Hospital 2009 operating budget variances, the long and short term plans of the various hospital departments and an in depth analysis of general economic conditions, the following assumptions have been concluded and will be used in the preparation of the 2010 operating budget projections. Patton Fuller Community Hospital should anticipate a 1% total “deflation rate” for prices in 2009; because of the weak economy, which is expected to continue into 2010. Net patient revenue will continue to increase, but at a decreased (3%) with little or no increase in patient volume, because of new managed care contracts. Other revenue is projected to increase by 15% based on marketing’s plan to increase donations by 15%. Expenses salaries and benefits salaries will hold to a 1% total increase in cost due to price “deflation” nation wide with no increase in labor hours. This assumption could be affected by a board decision either to raise nursing wages by 1$ per hour or to increase the nursing hour ratio. The increase in assets I the year 2009 was 7%, which is caused by an increase by an increase in accounts receivable by 56%, inventories by 100% and increase in property plant and equipment by 41%. The hospital may have provided more credit to customers or consumers to raise the revenues and more investment in fixed assets...
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...jjjjjjjjjjjjjjjjjjjjjjjjjwww.mass.gov/dhcfp. Trends in financial ratio analysis can provide useful ... Financial Ratio Analysis Project www.docstoc.com/.../Financial-Ratio-Analysis-Proj... - แคช - แปลหน้านี้ 11 Feb 2010 – Financial Ratio Analysis Project Final Report August 1, 1996. Prepared on behalf of: U.S. Department of Education 1. Executive Summary ... Financial Ratios for Patton-Fuller Community Hospital - College ... www.termpaperwarehouse.com/...Ratios...Hospital/... - แคช - แปลหน้านี้ 22 Jul 2012 – Patton-Fuller Community Hospital Ratio Computation 2009 and 2008 ... Financial Data Analysis For Patton Fuller Community Hospital · Patton ... California Hospital Financial Ratio Analysis Report - Google Books books.google.com/.../California_Hospital_Financial_Rat... - แปลหน้านี้ Title, California Hospital Financial Ratio Analysis Report. Contributor, California Association of Hospitals and Health Systems. Publisher, California Association ... A new perspective on hospital financial ratio analysis findarticles.com/p/articles/mi.../is.../ai_20446235/ - แปลหน้านี้ ผลการค้นหานี้ไม่มีคำอธิบายเนื่องจาก robots.txt ของไซต์นี้ - เรียนรู้เพิ่มเติม [PDF] FUNDAMENTALS OF HEALTHCARE FINANCE Online ... - ACHE.org www.ache.org/pubs/hap.../FHFOLAPPA.pdf - แปลหน้านี้ รูปแบบไฟล์: PDF/Adobe Acrobat - มุมมองด่วน 27 Mar 2009 – establishes the ratios and definitions used in any analysis. Perhaps the most complete set of comparative data for hospitals is the “Almanac of ... Health...
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...2010 Operating Budget Projection HCS/577 29 July 2013 2010 Operating Budget Projection Based upon a review of the Patton Fuller Community Hospital 2009 operating budget variances, the long and short term plans of the various hospital departments and an in depth analysis of general economic conditions, the following assumptions have been concluded and will be used in the preparation of the 2010 operating budget projections. Patton Fuller Community Hospital should anticipate a 1% total “deflation rate” for prices in 2009; because of the weak economy, which is expected to continue into 2010. Net patient revenue will continue to increase, but at a decreased (3%) with little or no increase in patient volume, because of new managed care contracts. Other revenue is projected to increase by 15% based on marketing’s plan to increase donations by 15%. Expenses salaries and benefits salaries will hold to a 1% total increase in cost due to price “deflation” nation wide with no increase in labor hours. This assumption could be affected by a board decision either to raise nursing wages by 1$ per hour or to increase the nursing hour ratio. The increase in assets I the year 2009 was 7%, which is caused by an increase by an increase in accounts receivable by 56%, inventories by 100% and increase in property plant and equipment by 41%. The hospital may have provided more credit to customers or consumers to raise the revenues and more investment in fixed assets...
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