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January 19, 2020

Health Care Finance II

APA, Health Care and Life Sciences

Review chapters 3, 4 and 17 of the text for this week’s assignment. Submit a thorough response to the following questions outlined in a word document. Utilize your critical thinking skills as you answer each of the questions to develop a thorough answer. You should not exceed three pages in your submission.

Questions:

1) What is the purpose of the statement of operations (Income Statement)? List the main classifications and the possible categories under these classifications. What are the estimates that are made for this statement by management?

2) What is the purpose of creating a balance sheet? List the three general classifications of the balance sheet and possible categories under these classifications. What will you utilize this statement as a healthcare manager?

3) What is the statement of cash flows? The statement is divided into three segments; list each category, why is it important to understand what occurs in each section.

4) What are the four classifications of ratios on which the financial statement analysis focuses?

5) What are the operating indicators used to analyze the financial performance of an organization?

6) What is the difference between trend analysis and comparative analysis, which one do you feel is more important?

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