Analyzing Financial Position

User Generated

Xbashal

Business Finance

Description

The CEO of a 400-bed hospital has scheduled a board of directors meeting to discuss the current financial situation of the hospital and steps that need to be done to correct some current problems. The CFO needs to send each board member an explanation of the financial statements that they will be discussing. You are the Director of Finance and he has asked you to put together a memo, explaining each statement. Do the following:

  • Provide a copy of the most common four statements used within your hospital and what information is available in each.
  • Make sure you explain each main components/section of each statement.

NOTE: You can develop your own set of statements or research and pull healthcare financial statements online.

2-3 pages


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Explanation & Answer

Hello,Attached find the completed work together with the plagiarism report. Go through it and in case you need any corrections kindly let me know.All the best.

Running Head: FINANCIAL STATEMENTS MEMO

Financial Statements Memo
Name
Institutional Affiliation

1

2

FINANCIAL STATEMENTS MEMO
Memo on Financial statements to be discussed by the board

This memo accompanies the overview of the balance sheet and the profit/ loss statements
of operation, statements of cash flows and stamen of changes in net assets to be deliberated by
the board for the first quarter of the 2018 financial year.
Medical Financial Statement


Balance sheet.



Statement of operation (profits and Losses).



Statement of cash flows.



Statement of changes in net assets.

1. Overview of the main balance sheet for the financial Period ending March 1 2018

Current Assets (CA) - The resources available to the Hospital during the year for patientcare services.
Cash

: $5,500,000

Net Accounts Receivable

: $2,000,000

Supplies

: $120,000

Total current assets

: $1,870,000

Gross Hospital Equipment and Property

: $8,500,000

Accumulated Depreciation

: $300,000

Net Hospital property and equipment

: $11,500,000

Total Assets

: $29,522,000

Current Liabilities (CL)-What the Hospital has to pay within a year

3

FINANCIAL STATEMENTS MEMO
Debt Payments:

$33000

Accounts payable:

$45000

Compensation & Benefits:

$66000

Settlements with third party payers:

$58000

Total Liabilities:

$202,000

Net Assets:

$29,322,000

2. Statement of Operation (Profit & Loss)
This follows the accrued accounting policies and revenue is recognized when it is earned for
example the patient service revenues for the period of the year in review. The expenses on the
other hand are recognized once assets are used up for the period of the year in review.
Unrestricted Revenue
Patient Revenue service:

$950, 000

Provision for bad debts:

$10,000

Net patient service revenue:

$940,000

Net asset...


Anonymous
This is great! Exactly what I wanted.

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