Health Care Case Study: Financial Statements

Introduction: In the summary you will read to a greater extent or less Patton-Fuller Community hospital (PFCH) and how the hospital uses audited and unaudited pecuniary statements, reviews their fiscal ratios, and the births among expenses and gross. Other atomic number 18as of discussion are the different make of tax revenue sources on the financial reporting and how the Patton- Fuller participation Hospitals statement deals with the revenue and thither expenses grouping. Audited Versus Unaudited mo makeary contentions In the case of Patton-Fuller Community Hospital (PFCH), there are some differences that were set up in the audited reports (2). For example, in the Statement of Revenue and Expense, there was an additional provision provided for doubtful accounts which brought the net income from the black to the blushing(a) (2). The audited and unaudited Balance Sheets also differ due to an adaptation found in the audit (2). Overall, the two reports were re latively destination and request that there are good controls in value by the organizations over finances and financial reporting. The Financial Ratios The ratios did not better overall when comparing the unaudited data to the audited data. For example the solar days cash on authorize (DCOH) ratio showed 19.68 days on the unaudited data whereas compared to the audited data it was 18.

26 days. This is not an progress given the accompaniment that the DCOH decreased by one abounding day. This would not be good information for the management or financial teams as the cash flow is decreasing by one day. In ad dition the quick ratio dropped a few points ! masking that the organization is becoming less capable to pay for the debt it is incurring. kin between Revenue Sources and Expenses The revenue sources relationship with the expenses go hand in hand. The net patient revenue extend discussed in the report by the chief financial officer showed with the ontogenesis in revenue there was an increase in expenses. The determination is to keep expenses less then the...If you desire to get a full essay, order it on our website: OrderCustomPaper.com

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