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Assignment 1: Ratio Analysis Financial management It is important to understand that when interpreting financial statements, the numbers alone may not provide the whole financial picture of an...

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Assignment 1: Ratio Analysis

Financial management

It is important to understand that when interpreting financial statements, the numbers alone may not provide the whole financial picture of an organization. Instead, you must analyze the statements using ratios, which are then compared to benchmarks across the health care industry. For this Assignment, examine the financial health of a community hospital.

To prepare for this Assignment:

Review the Week 8 Assignment 1 document provided to you by the Instructor. Examine the financial statements from the community hospital. Reflect on how you will use this financial data to calculate and analyze the organization’s financial ratios. Refer to Chapter 4 ofFinancial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applicationsfor additional guidance.

The Assignment:

Using the statement of operations and balance sheet for the community hospital, complete the“Week 8 Ratio Excel Template”.

Answered Same Day Jul 17, 2020

Solution

Aarti J answered on Jul 19 2020
152 Votes
Ratio Template
    Week 8 Assignment 2 Ratio Template
            A        B            D        E        F        G
    (in '000)
            12/31/20X1        12/31/20X0            20X1        20X1        20X0        20X0
    Ratio[a]        [D/E]        [F/G]            Numerator        Denominator        Numerator        Denominato
    Cu
ent Ratio        1.49        1.26            $6,500        $4,350        $5,400        $4,300
    Quick Ratio        1.22        1.00            $5,300        $4,350        $4,300        $4,300
    Acid Test Ratio        1.22        1.00            $5,300        $4,350        $4,300        $4,300
    Days in Accounts...
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