health care accounting 5.2
You have been recognized as a financial analysis expert. As such, you have been hired to conduct a review of a for-profit organization’s latest consolidated financial statement and make recommendations to leadership based upon your findings. The business proposal requires the use of 3 scholarly sources to support your work.Select 1 consolidated financial statement from a for-profit health care organization of your choice.Assignment Directions:Choose 2 of the financial ratios listed below and perform a calculation of that ratio using your selected organization’s financial statements. Alternate ratio names are provided in parenthesis.Current ratio (liquidity ratio)Debt to assets ratio (solvency ratio)Free cash flow (solvency ratio)Price-earnings ratio (profitability ratio)Profit margin ratio (profitability ratio)Return on total assets Ratio (profitability ratio)Working capital (liquidity ratio)Include an explanation of what the result of the calculation means about the organization.Write a 1,050- to a 1,400-word business proposalInclude the following items in your business proposal:Background/History of the Organization:Describe the health care organization.Include the history and purpose, and identify the service or product they offer. (This information is typically found in the annual report.)Operational Structure:Describe the company’s operational structure (i.e., sole-proprietorship, corporation, partnership, etc.).Include a definition of the type of structure and discuss their financial health. (This information is typically found on the SEC website.)Financial Analysis and Stability:Explain the purpose of financial analysis.Identify the steps required in performing a financial analysis.Include information about the organization’s assessment of its current financial stability.Identify their growth plans or plans to increase future revenue. Include any challenges they have encountered or anticipate.Vertical and Horizontal Analysis:Compare vertical and horizontal analysis.Include the actions the organization should take if the findings show unexpected differences. Provide 1 example.Financial Ratios:Explain the use of financial ratios.Define the 2 financial ratios you selected for this assignment.Using the organization’s financial statements, perform a calculation for the 2 ratios.Include an explanation of what the result of each calculation means about the organization’s financial status.Recommendation For Leadership:Recommend 1 financial strategy to leadership. The recommendation must be based on the organization’s financial statements and related to their financial status improvement, liabilities reduction, revenue streams expansion, or future growth.Conclusion:Write a conclusion. This closing paragraph is designed to assist the reader in understanding the purpose of the paper.Summarize the key points from the supporting paragraphs without introducing any new information.Include how this information would be used by health care managers.Cite 3 scholarly sources to support your assignment.Format your citations and references according to APA guidelines.