Financial Analysis Statement Assignment Discussion

Financial Analysis Statement Assignment Discussion

This is an excel spreadsheet. This is PART 1. I need you to complete the Financial Statement Analysis section (attachment FE005_statement_analysis).

Part 1: Financial Statement Analysis
Open your Healthcare Budget Request workbook (attachment FE005_summary) and navigate to the Financial Statement Analysis tab. This document is the work that has been completed so far.
Using the attachment FE AoE Workbook Step-by-Step Guide for guidance, review the section titled FE005: Financial Statement Analysis and Elevator Speech PAGE 29 to page 34.5.
• Conduct analyses as directed on the Financial Statement Analysis tab. Your analysis will include spreadsheet calculation of financial statement ratios.

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Instructions below:
The final assessment for this competency has 3 parts. In part 1, you will do some financial analyses (horizontal analyses and a return on assets) on either the example (Healthways clinic) provided in your workbook or on the financial information from your organization. Below are detailed instructions and there is a PowerPoint attached to help guide you. Financial Analysis

Part 1 you will be working with and submitting you excel workbook (attachment FE005_statement_analysis) that you have been using for your assignments.
1. In the assessment instructions you are provided with an example organization for Good Samaritan Hospital. However, I would not recommend that you use these financials because it is difficult to find the numbers you need to do the analyses for this assessment. I would suggest that you use the financial information found on the last tab of your workbook that you have been using in the previous competences. Open your Healthcare Budget Request workbook (this is the excel workbook) that you created in the previous assignment and navigate to the Financial Statement Analysis tab for Health ways financial for the worksheet.
2. Using the Healthcare Budget Request Workbook Step-by-Step Guide for guidance, conduct analyses as directed on either your organization financial statements or those provided in the Sample Financial Statements document. Your analysis will include spreadsheet calculation of financial statement ratios.
3. Using formulas, conduct a horizontal analysis by calculating changes over the periods of time for which you have statements. Conduct your analysis for the following over the 2-3 years for which you have statements:
a. Horizontal analysis is basically a comparison of various values over 2 or more years. For example, a 2016-1018 horizontal analysis of ABC Corporation Net Revenue would yield a result of (131,345 – 102,007) = $29,338.00. As this is a positive number, net revenue has increased over this time which might suggest that the organization is growing
b. For the first 3 bullets enters the information in a separate area, something like this:
c. Changes in Revenue
 On the income statement, look at your revenue over 2-3 years (depending on which sample you are using)
d. Changes in Expenses
 On the income statement, look at your expenses over 2-3 years (depending on which sample you are using)
e. Changes in Net Earnings

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 On the income statement, look at the Net Earning, however on the Heathway example the term Net Income is used
b. Calculate the organization Return on Assets (ROA)
• Another valuable analysis tool is the Return on Assets ratio or ROA. Return on assets is an indicator of how profitable the organization is relative to its assets. ROA suggests how efficient a company’s management is at using its assets to generate earnings. Return on assets is displayed as a percentage, and is calculated as:
 Return on Assets = Net Earnings/Total Assets (this will give you a percentage)
 For example, ABC Corporation 2016 ROA would be calculated as 2,474 / 226,376 = .011, or 1.1%. This means that every dollar that ABC Corp. invests in assets generates $1.10 of net income.
 Note: Horizontal analysis and ROA analysis are important for projects as the one you are proposing because financially healthy organizations (such as those with growing income statement bottom lines and those with higher ROA values) are more likely to seek investment opportunities, while those less financially healthy may need to see the value beyond the

Financial Analysis Statement Assignment Discussion

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