Health Care Case Study: Financial Statements Essay
The paper is a health care case study on Patton-Fuller Community Hospital’s financial statements. The summary of the paper is a review on the annual report financial statements at Patton-Fuller Community Hospital. A discussion on how the audited and unedited financial statements differ. An explanation will be discussed on the financial ratios for the hospital improving. The relationship between revenue sources and expenses on Patton-Fuller’s financial performance will be discussed. The effect of revenue sources on financial reporting at the hospital will be discussed. The hospital’s revenues and expenses grouped for planning and controlling will be explained.
Audited & Unaudited Financial …show more content…
Financial ratios are compared to historical ratios of the hospital itself, competitor’s financial ratios or the overall ratios of the hospital in question. Performance may be adjudged against the organizational goals or forecasts. A number of ratios must be analyzed together to get a true and reliable picture of the financial performance of the hospital. Relying on each ratio individually may not be a good strategy.
Relationship between Revenues Sources & Financial Reporting
In Patton-Fuller’s financial statements, revenue is income that a hospital (company) receives from its normal business activities, usually from the sale of goods and services to customers. Some hospitals receive revenue from interest, dividends or royalties paid to them by other companies. Revenue may refer to a hospital income in general, or it may refer to the amount, in a monetary unit, received during a period of time. Financial Reporting is a formal record of the financial activities of a business (hospital), person, or other entity. A financial statement is often referred to as an account, although the term financial statement is also used, particularly by accountants. A financial statement should be understandable, relevant, reliable and comparable. Reported assets, liabilities, equity, income and expenses