Attached are financial statements (balance sheet, income statement, and statement of cash flows) for Great Hospital for 2014 and 2013. In addition, there is a financial ratios tab listing industry averages for comparable hospitals. Your assigned tasks are as follows:
1) Add a variance analysis to Great Hospital's income statement, calculating the dollar change from 2013 to 2014 as well as the percent change. Using the variances you find, explain the factors that contributed to the difference between the net income in 2013 and the net income in 2014.
2) Review the statement of cash flows. Choose two line items on the statement and discuss how the change in that line impacted cash in 2014.
3) There are 16 financial ratios listed on the industry averages tab. For each ratio, calculate and list Great Hospital's results for both 2013 and 2014. Note: For the debt service coverage, assume that Great Hospital's prinicipal payments totaled $200,000 in both 2013 and 2014.
4) Utilizing these ratios, prepare a narrative summary for each set of ratios (liquidity, profitability, capital structure, and asset management) focusing on two questions: 1) Did Great Hospital's results improve or worsen from 2013 to 2014? 2) How does Great Hospital compare to industry averages?
5) After considering all of the financial results for Great Hospital, what are your conclusions about their financial performance?
|Due By (Pacific Time)
||05/19/2015 08:00 pm