Review of the Financial Health of a Hospital
You have recently accepted a job offer at a local hospital as a department accountant. Your supervisor would like a comprehensive analysis of the current financial status of the hospital.
Locate the balance sheet and income statement of a hospital in your area. Alternatively, you can use these sample reports (link below). In an executive summary to your supervisor, you will need to review the financial health of the organization. A detailed delineation of the required aspects follows:
• Identify ratios needed to determine profitability, liquidity, capital structure, and asset efficiency. For each of these four areas, identify a ratio that helps determine the hospital’s status, explain the meaning of the ratio, and provide a calculation.
• Provide a summary of the hospital’s financial strength, using the calculated ratios to justify your conclusions. Identify areas of strength and potential issues.
Requirements:
• Submit a five-page paper (not including the required title and reference page).
• Format the paper according to the APA standards
• Include a minimum of three to four credible, academic, or professional references beyond the text or other course materials.
• Be sure to discuss and cite reference concepts taken from the assigned textbook reading and relevant research.
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