...Financial Statements Review Team E Jaime Jensen, Porsha Seay HCS 405 February 23, 2015 Jennifer Noren Financial Statements Review This paper is based on a case study for Patton-Fuller Community hospital. It’s a review on how to determine the annual reports differs from unaudited and audited statements. This paper will also explain the relationship between revenue sources and expenses on Patton-fuller financial performance. The effects of revenue sources on financial reporting at the hospital will also be discussed. The hospital revenue and expenses grouped for planning and control will also be explained. The balance sheet for Patton-Fuller Community Hospital for the years of 2008 and 2009 have differences in the statements provided. The audited and unaudited financial statement was different because in the statement of revenue and the expenses there was an additional provision provided that brought the account in the net come column from black to red. On the 2009 unaudited statement there was 59,787,000 and the audited statement there was 58,787,000 which accounts for the 1,000,000.When looking at the financial statements what is first noticed is that they are expressed in thousands which means all the numbers shown will have zeros added to the end. When writing in thousands a number written as 16,000 on the statement is actually 16,000,000. When looking at the differences between the audited and the unaudited statements there is a one million dollar difference...
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...Financial Statement Review Team C HCS/405 September 15, 2014 Financial Statement Review Introduction This summary review provides insight in the Patton-Fuller Community Hospital financial statement. This paper will show the relationship between the two sources of revenue and expenses on the financial report, also review the annual reports from 2008-2009, along with the difference between the two statements audited and unaudited. In addition, the paper will show how the impact of the hospital’s two revenue sources could have on the finance report and the importance group’s revenue and the costs when implementing the insider planning and controls of finance. Audited and Unaudited Financial Statement Differ The balance sheet was unaudited in 2009-2008. In 2009 the total current assets was $128,867 and in 2008 the total current asset were $130,026 so 2008 was a better year. The total assets in 2009 were $588,767 and in 2008 the total assets were $548,535. In 2009 the total current liabilities was $23,807 and in 2008 the total current liabilities was $8,380. There was less money paid out in 2008 than in 2009. The total liabilities in 2009 were $462,153 and the total liabilities paid out in 2008 were $213,450. The statement of Revenue and expenses was also unaudited in 2009 and 2008. In 2009 the total revenue was $462,982 and in 2008 the total revenue was $421,314. The revenue is the amount of money that was received by the company so in 2009 the revenue was more than...
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...Financial Statement Review Financial statements serve a pivotal role in determining the condition of any business organization for it provides suppliers, creditors, and stakeholders significant information on the business organization’s position in the business industry. In the week 1 assignment of the course Accounting 561, the student’s task is to present financial information on a particular American corporation after obtaining financial statements such as income statement, statement of stockholders equity, balance sheet, and statement of cash flows. The student chose Amazon.com, an online retailer founded in Seattle, Washington in 1994 and listed as one of Fortune 100 companies (Amazon, 2013). Amazon.com’s mission of acquiring everything people want from books, electronic and much more expanded the company globally and catered worldwide system of fulfillment and third party sellers on their website (Amazon, 2013). In this research, the student downloaded the consolidated annual financial statement of Amazon from its website and will be attached as an appendix to this paper. Income Statement Income statement provides the revenues, expenses and net income or loss of a company for a certain period of time, which is usually quarterly or yearly. In the current income statement of Amazon, it shows $61,093 (in millions) net income for the year 2012 whereas, $48,077 (in millions) net income for the year 2011 (Amazon, 2013). The net income of Amazon.com significantly increased...
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...Financial Statement Review Team B December 10, 2014 HCS/405 Mr. Henderson The Patton-Fuller Community Hospital represents a structure organization within the healthcare setting where the highest quality of care is aimed among all employees. Although the quality of care holds a vital of importance within the healthcare organization, finance and budgeting plays a very important role as well. Finance with any organization paves the way to great success for their consumers along with their medical staff. According to the financial statements, Patton-Fuller Community Hospital has a variety of departments accepting inpatient activity allowing the organization to accumulate eighty-percent of revenue. By comparing the annual financial reports, Patton-Fuller Community Hospital has accumulated an excessive amount of debt in areas such as staffing and supplies. With continuous research, the finance department has implemented financial ratios comparing the differences between un-audited and audited statement to ensure less expenditures and ways to plan and control. The balance sheet was completely unaudited in the years of 2009-2008. During the year 2009 the over-all current assets was $128,867 and in 2008 the entire current asset was approximately $130,026 therefore in 2008 it was a much enhanced year. In 2009 the total assets listed at $588,767 and throughout 2008 the whole assets were at $548,535. In 2009 the existing liabilities was $23,807 and ongoing in 2008 the complete...
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...Financial Statements Review Ashley Dunn HCS/405 November 14, 2013 Robert McDaniel Financial Statements Review The Patton-Fuller Community Hospital is a full-service, for-profit hospital with 600-beds. Since 1975, the hospital has made every effort to provide advanced patient care for both inpatient and outpatient treatment in Northwest valley. The Patton-Fuller Community Hospital is owned by a 14 person board, in which 12 are active physicians. Collectively, the board works on a budget that best aids the board and the hospital. The goal is to make a profit while providing patients with the best care around. This paper will discuss the summary of the financial statements issued for the Patton-Fuller Community Hospital in the years 2008-2009 (Patton-Fuller Community Hospital, 2009). The effect of revenue sources on financial reporting at the hospital will vary depending on the amount of revenue being generated and the specific source of the revenue. Revenue sources should be included in financial reporting for the hospital's records. (“Telemedicine”, 2013. According to the documents provided, it look as if the financial officer had over-estimated the list in payment remittances, making it seem as if they would be healthier than they actually are. When providing figures for accounts receivable in 2009 the financial officer projected the total at $59,787, with a net allowance for bad debt for the same time-period at $10,757 while the audited account shows a...
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...Financial Statements Reviewed Beverly Landrum HCS/405 September 15, 2014 Terri Andrews Financial Statements Reviewed Team D will explain the difference between the audited and unaudited financial report starting with the team’s understanding the financial statement and results should be expressed in thousands. Team D recognized any number from the statement should have zeros added at the ends. Let’s say a number that is written as 7,000 in the statement should actually read 7,000,000. So in our report for this paper, we will follow the thousand noted in the audits with the knowledge of the true value. There were many differences in the audited and unaudited financial statements. There was a deficient -$18,856 in cash and cash equivalents between 2008 and 2009 as well as a decline in assets of limited use of $14,257. However, an increase of $21,121 in the patient account receivable demonstrating Patton-Fuller Community Hospital (PFCH) had an increase in patient care and services. There was a rise in accounts receivable with a result of $0 revenue. It was noted in the inventories there was a $1 million dollar difference between 2009 and 2008. It was explained in the auditor’s there was an annual inventory in December that supply expenses were underestimated and that cost was added to the December’s statement (PFCH 2009). The prepaid expenses differences amounted to a negative 106. The total current assets grand total differences between 2008 and 2009 was -$2159. ...
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...Financial Statements Review Anita Coronel, Santiago Nunez-Rivas, Verlendra Ruff & Evelyn Daniels HCS/405 March 17, 2014 Judy Araque . To have a successful hospital or business financial knowledge is critical, the manager in charge of finances must have a good understanding of accounting. Financial decisions are made with more precision and accuracy. In this paper the audited and unaudited financial statements will be discussed, what is the effect of revenue sources on financial reporting at the hospital, and how are the hospital’s revenue and expenses grouped for planning and control. How did the audited and unaudited financial statements differ? (Santiago) The importance of performing proper audits of financial statements should not be underestimated. For example, Patton Fuller performed an audit of their records and found a discrepancy of $1,000 in the 2009 total assets as compared to the unaudited documents. Although some may find this amount as minimal due to the total amount of current assets at hand, finding the mistake is critically important in maintaining the integrity of the organization’s financial records as well as meeting organizational goals. What is the effect of revenue sources on financial reporting at the hospital? (Evelyn) Any company’s revenue will come from multiple sources, to include the sale of goods, interest on loans, and income from renting or...
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...Simulation Review HCS/405 September 2, 2013 Elijah Heart Center (EHC) is a healthcare organization that focuses on patients with heart problems. This 140 bed cardiac care hospital located in New York function as an advanced coronary care center, 120,000 square feet cardiac catheterization labs, surgical suits for open heart surgery, ancillary equipment for radiology, labs, nephrology, pulmonology and service for full spectrum of cardiovascular patients. There is also a full range of outpatient cardiac diagnostic services and rehab programs for patients recovering from heart attacks, open heart surgery, and coronary angioplasty. Although the organization is having some financial problems the patient volume is stable and increasing. As the senior financial consultant I will be working to get things financially under control, I will present a few plans for short and long term goals. I will be working with a great team that includes Gilbert Sanchez, Saiku Takeuchi, Zachary Macholz, and Dr. Brenda Lopez. The Elijah Heart Center has managed to stay focused and in operation do to the satisfied patients that need the services. There is a great team that provides great patient care but there has been a lot of poor decision making in the past that is resulting in a lot of profitable problems. In May 2x03 the financial department reported facing a potential working capital shortfall. In an emergency the hospital might not have enough cash to sustain itself...
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...to Wal-Mart’s Financial Statements for 2013: http://az204679.vo.msecnd.net/media/documents/2013-annual-report-for-walmart-stores-inc_130221024708579502.pdf What is the net income for the current fiscal year? Is it up or down from the prior year? Why would this information be important to investors? The net income for the current fiscal year is $16,999,000 compared to last year’s net income of $15,699,000.There was an increase of $1,300,000 from 2012 fiscal year to 2013 fiscal year. This information would be important to investors since they would not want to invest in a company that is losing money from one fiscal year to the next. Investors would want to verify that the company is making a profit before investing financially into the corporation. What is the ending balance in stockholders’ equity? Why would a labor union potentially be interested in this information? The ending balance in stockholders’ equity is $81,738,000. Labor unions would potentially be interested in this information because union members are shareholders in the corporation through their pension plans. If stockholder’s equity is decreasing that would in return mean that their pension funds could also be decreasing. What is the total value of assets? Why would this information be important to a potential creditor? Total value of assets is $203,105,000. This information would be important to creditors since they need to determine how much of a financial risk they are taking...
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...Financial Statement Review and Analysis Strengths: Liquidity – RFA has an adequate amount of cash to meet it short-term obligations. Most funders like to see a ratio of 1.5 or higher. RFA exceeds that requirement indicating that it is in good financial health. Balance between administrative, fundraising and program related expenses - An average funder likes to see an organization whose program expenses are between 75 and 90% of their total expenses. RFA is a little on the high side at 87% but not high enough to raise any flags. This indicates that RFA is running efficiently. Debt – Besides some outstanding accounts payable, RFA has no debt. The notes in financial statement reference two separate lines of credit for a combined amount of 250K, but there is no outstanding borrowing. Government Funding - There is no heavy reliance on government funding, which is good since government funding can be so unreliable and rigid. Areas of Concern: Financial Reserve – RFA does not have a huge financial reserve. Most funders like to see that an organization has at least 3 months worth of liquid assets to cover the organization monthly expenses. RFA’s balance sheet indicates that it will consume its liquid assets within 1.28 months. Revenue Sources – The agency seems to have only two revenue streams. One from foundation grants and the other from research contracts. A significant portion of the agency’s revenue is derived from a limited number of foundations...
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...Assignment: Audit Report Review By Eleanor P. Luu Professor Joetta Malone Course Title ACC 410006VA016-1126-0010 July 27, 2012 In my review, I found the financial statements for the City of Galax. They are located near Roanoke, Virginia and they have three separate financial statements that are provided for their three different funds, not counting their General Fund. They have their Governmental Fund, their Proprietary Fund and their Fiduciary Fund. The amazing thing in reviewing their financial statements is that they follow the guidelines that have been established by GAASB. The GASB “was formed in 1984 to give public sector entities guidance for recording their financial transactions. For smaller towns or cities, the basic guidance is that they use cash basis accounting for their activities. For larger towns or cities, the basic guidance is that they must use accrual accounting as their method. The City of Galax uses both and actually even a combination of the two. The government-wide financials and the proprietary funds financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied....
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...Paulding County, GA Financial Statement / Audit Report Review Government and Not-For-Profit Accounting, ACC 410 November 2, 2014 Financial Statement /Audit Report Review This is the Audit Report Review of the evaluation of the Government-wide Financial Statement and the Fund Financial Statement of Paulding County, Georgia. Under compliance of the Governmental auditing standards, GASB Statement No. 34, Paulding County’s report includes Government-wide financial statements, which include the Statement of Net Assets and the Statement of Activities. Also released by Paulding County is the required second set of statements, the Fund financial statements, that include the Balance Sheet-Governmental Funds, Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets, the Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds, and the statements associated with the other governmental fund categories, general, propriety and fiduciary. The county’s fiscal year ended June 30, 2013 and the reports were released on December 16, 2013 (Paulding County, GA 2013). Mauldin & Jenkins CPA, LLC of Atlanta, Georgia, independently audited the county’s basic financial statements. They audited the business-type activities, the comprehensive discretely presented component units, each major fund, and the aggregate remaining fund information of Paulding County. The component units are either 1) legally separate entities for which the...
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...------------------------------------------------- University of Phoenix Material Financial Statement Review- Home Depot The publicly traded US Corporation I chose was Home Depot, utilizing the most current fiscal year which ended February 2, 2014. “The world’s largest home improvement retailer most current On February 25, 2014, released its most current Fourth Quarter & Fiscal 2013 Results announcing a 21% increase in quarterly dividends and guidance for the 2014 Fiscal Year” (Home Depot Financial Reports, 2014). What is the net income for the current fiscal year? Is it up or down from the prior year? Why would this information be important to stakeholders? Based on the Home Depot financial statements, net income for the current fiscal year ended February 2, 2014 is $5,385 million. The net income increased 18.7% from the previous fiscal year. I believe that this data would be important to stakeholders because it indicates success of the company, and potentially the health of their shares of a company. Stakeholders usually look at historical trends of net profits to assess a degree of risk associated with the company. What is the ending balance in stockholders’ equity? What does this balance represent? Why would stakeholders potentially be interested in this information? Based on the most recent fiscal financial statement, the ending balance in stockholders’ equity is $12,522 million, (utilizing the data released February 2, 2014)...
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...Prospective Financial Information Definition “Prospective financial information” means information about future financial performance, future financial position, future cash flows, and future movements in equity based on assumptions about future events and courses of action. Prospective financial information includes prospective financial statements, the notes to the prospective financial statements, and any narrative relating directly to the prospective financial statements. Philippine Standard on Assurance Engagements (PSAE) 3400 (previously PSA 810), “The Examination of Prospective Financial Information” establishes standards and provides guidance on engagements to examine and report on prospective financial information including examination procedures for best-estimate and hypothetical assumptions. The general guidelines include the following: Acceptance of Engagement Before accepting an engagement to examine prospective financial information, the auditor would consider, amongst other things: * The intended use of the information. * Whether the information will be for general or limited distribution. * The nature of the assumptions, that is, whether they are best-estimate or hypothetical assumptions. * The elements to be included in the information. * The period covered by the information. Nature and Purpose of Prospective Financial Information Prospective financial information can include financial statements or one or more elements of financial statements...
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...Financial Statement Review – Intel What is the net income for the current fiscal year? Is it up or down from the prior year? Why would this information be important to investors? From the income statement of Intel, the net income is $ 11,005 million for the current fiscal year. The net income is down compared to the prior year which was $12,942 million. The net income determines the efficiency and profitability of a company. The net income is use to analysis where you can determine how efficient a company utilizes its assets and equity. Net income along with several items on the Financial Statement such as operational income, net income before and net income after tax, are used in the fundamental analysis of companies. They help determine different ratios and enable the investor to determine how effective a company is internally. The net income is essential to investor as it determines the productivity and provides a good perspective on determining if a company is making money on a satisfactory scale. What is the ending balance in stockholders’ equity? Why would a labor union potentially be interested in this information? The ending balance of the stockholder’s equity was $ 51,203 million. The balance of shareholder’s equity is acquired from the company’s total assets subtracted with its total liabilities; this can be used as an indicator of the net worth of the company (Way, 2013). The stockholder’s equity can serve as a measure of the progress of the company,...
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