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This week's assignment is a case study that encompasses both Finance and Accounting. Please locate the case in week 6. Instructions: Read the case in its entirety! Answer the questions at the end of...

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This week's assignment is a case study that encompasses both Finance and Accounting. Please locate the case in week 6.

Instructions:

  • Read the case in its entirety!
  • Answer the questions at the end of the case study (before exhibits). Use the questions as a guideline only. Do not just answer the questions or number them in your paper!
  • Write a brief introduction that includes an overview of the case and identify the main issues.
  • Write a strong conclusion with a recommendation for Dr. Jones.
  • Follow APA 6thedition guidelines.

Case Study Guidelines:

A case study is a short description of a real business situation. Analyzing case studies gives you the opportunity to apply concepts you’re learning to real business problems. Cases are generally written for several types of analysis. Usually, there is not a "right or wrong" answer. Rather, cases provide a vehicle for you to demonstrate your understanding and ability to apply course concepts and theories. You must use appropriate sources (properly cited) to support your position. Check your analysis by assessing how well it demonstrates your subject knowledge. If your answer relies solely on your ‘impressions’ of the topic, it is likely that the analysis is not your best effort.

Simply answering the questions which are part of the case is not enough; consider the questions to be clues to the important concepts and facts. You are strongly encouraged to use the following outline so that your analysis is organized appropriately:

1.Identify both the key issues and the underlying issues. In identifying the issues, you should be able to connect them to the business principles which apply to this situation.

2.Discuss the facts which affect these issues. The case may have too much information. In your discussion, you should filter the information and discuss those facts which are pertinent to the issues identified above.

3.Discuss your tentative solution to the problem and how you would implement your solution. What actions would you propose to respond to the situation, based on the knowledge you have gained in this course? You should draw on knowledge gained in your readings, experience and coursework (in this course and others) to support your response. Be sure to properly cite references in APA format. You should also draw on other references such as business periodicals and relevant journals. Remember that ananalysisis more than simply asummaryof the Case Study.

4.Discuss follow-up and contingency plans. How will the organization know that your proposed solution is working? What should they do if it does not work?

Evaluation Criteria

  • Have you identified the critical issues/problems in the case and analyzed the key facts related to the issues/problems?
  • Have you discussed a tentative solution that addresses the issues/problems and how you would implement your solution?
  • Is information from the textbook and other sources integrated into your analysis appropriately? For all sources, you must provide complete APA citations.
  • Is the paper professionally presented? Remember your audience. It is important to present your information as clearly and succinctly as possible. Do not sacrifice thoroughness for mere brevity.
Answered Same Day May 23, 2021

Solution

Neha answered on May 23 2021
164 Votes
Sunset medical is a 10 year old medical practice managed by Dr. Sally Jones along with his supporting staff and CPA firm. Dr. Jones met his hands with Physicians Management Inc. to provide management and billing services. The contract between the two parties although mentions PMI would supervise and manage the day to day operations. PMI also supports Business office manager with day to day operations. PMI is also responsible for various other functions like hiring, PR, administration etc. PMI also provides unaudited financial statements of the company. PMI takes management fee of 4% and billing and collection fee of 5% of revenue. Physicians Medical Inc. is working as part of the management and billing and office department. It has control over day to day operations and transactions. The appointment of owner’s Son in law shows that they are not complying with the compliances. PMI is clearly not working for the benefit of the medical practice. The tasks are not kept multi checked. The old employees are terminated. The credibility suffers here. The unaudited financial statements are also made by PMI which gave them the clear chance to influence financial statements and its figures as per their convenience. By appointing there family member and removing employees of the practice who were working there for past 10 years violates the principle of check by different person and that authority should not be there in one person’s/authority’s hands. The actual revenues did not increase by $400000. The money taken as loan for the machine and otherwise has been added with the revenues and shown as part of the revenue. So the number of revenue is not real. The financials prepared by PMI does not give the co
ect view of the financial status of the company, the number of revenue and cash generated and income and loss are not real. Since PMI was handling the billing and expenses and management. Also with the involvement of family member in the company it is clear that PMI might not have enough motivation to provide the right services as per the requirement by the medical practice. PMI has also faced ethical dilemma. They have been control of the whole organization and also earning fees for the same. They also have the decision making powers. In such situations, PMI either can show to real situation of the company and PMI’s failure to deliver the promised results or to fake the figures of the financials and business of the medical practice.
PMI and Sunset Medical are in a contract of outsourcing of services. They both however followed different accounting assumptions and reporting assumptions. PMI showed the 6 monthly financials and influenced Doctor to get more business...
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