Tag: Financial Statements

3-4 pages not including title, abstract and reference.  APA format
Your facility has the following payer mix:
40% commercial insurances  25% Medicare insurance  15% Medicaid insurance  15% liability insurance  5% all others including self-pay
Write a 3-4 page report that addresses the following requirements: 
Assume that for the time in question you have 2000 cases in the proportions above. (What are the proportions of the total cases for each payer?)    The average Medicare rate for each case is $6200- use this as the baseline. Commercial insurances average 110% of Medicare, Medicaid averages 65% of Medicare, Liability insurers average 200% of Medicare and the others average 100% of Medicare rates. (What are the individual reimbursement rates for all 5 payers?)

1. What are the expected rates of reimbursement for this time frame for each payer? What is your expected A/R?
2. What rate should you charge for these services (assuming one charge rate for all payers)? (This gives you your total A/R.) Calculate the total charges for all cases based on this rate.
3. What is the difference between the two A/R rates above? Can you collect it from the patient? What happens to the difference?
4. Which of these costs are fixed? Which are variable? Direct or indirect?
   • materials/supplies (gowns, drapes, bedsheets)
   • Wages (nurses, technicians)
   • Utility, building, usage exp (lights, heat, technology)
   • Medications
   • Licensing of facility
   • Per diem staff
   • Insurances (malpractice, business etc.)
5. Calculate the contribution margin for one case (in $) with the following costs for this period, per case: a. materials/supplies: $2270 b. Wages: $2000 c. Utility, building, usage exp: $1125 d. Insurances (malpractice, business etc.): $175
6. Using the above information, determine which is fixed and which cost is variable. Then calculate the breakeven volume of cases in units for this period.
7. Suppose you want to make $150,000 profit between this period and next period to fund an expansion to the NICU, how many cases would you have to see? At what payer mix would this be optimal?

Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC), University Library, Library resources: Company Directories and Financials 

Tutorial help on Excel^® and Word functions can be found on the Microsoft^® Office website. There are also additional tutorials via the web offering support for Office products.
Select a publicly traded, U.S. corporation with which you are familiar or one where you currently work or have worked in the past.
Research the company on the Internet and download the Income Statement, Statement of Shareholders’ Equity, Balance Sheet, and Statement of Cash Flows.
Develop a minimum 700-word examination of the financial statements and include the following:

• Determine the net income for the current fiscal year (FY). Is this income up or down from the prior year?
• Explain the relevance of changes in net income to investors.
• Determine the ending balance in shareholders’ equity. Why would organizations such as labor unions be interested in this?
• Determine the total value of assets.
• Discuss the relevance of the total value of assets to potential creditors and why this is important.
• Compute the return on assets. Discuss the relative profitability of the company based on your results.
• Compute the working capital and current ratio. Evaluate the relative liquidity of the company based on your results.
• Compute the debt to assets ratio and the free cash flow for your company. Analyze the results and comment on the relative solvency of the company.
• Discuss how the financial statements are used in your current role or a position you would like to hold. How might these aid you in managerial decision making?

Show your work in Microsoft^® Word or Excel^®. 
Complete calculations/computations using Microsoft^® Word or Excel^®.   
Include the four financial statements along with your assignment.
Format your assignment consistent with APA guidelines. 

Write a 750-1000 word paper.  In your paper include the following:
Using the annual financial statements and other research, explain the stock structure of the organization you have been studying. What elements comprise their capital structure? What is the history on your company’s growth? Look up the beta for your stock. How does your stock compare to the market? Is it high, average, or low risk? Why? How do you feel about the risk level of your organization?
Include a title page and 3-5 references.  Only one reference may be from the internet (not Wikipedia).

Purpose of Assignment This activity helps students recognize the significant role accounting plays in providing financial information to management for decision making through the evaluation of financial statements. This experiential assignment requires students to use ratios to evaluate and analyze a company’s liquidity, solvency, and profitability. Assignment Steps Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC), University Library, Library resources: Company Directories and Financials Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products. Select a publicly traded (shareholders), U.S. corporation with which you are familiar or one where you currently work or have worked in the past. Research the company on the Internet and DOWNLOAD the Income Statement, Statement of Shareholders’ Equity, Balance Sheet, and Statement of Cash Flows and attach to your paper or create a separate file for submission. Develop a minimum 700-word examination of the financial statements and include the following: Determine the net income for the current fiscal year (FY). Is this income up or down from the prior year? Explain the relevance of changes in net income to investors. Determine the ending balance in shareholders’ equity. Why would organizations such as labor unions be interested in this? Determine the total value of assets. Discuss the relevance of the total value of assets to potential creditors and why this is important. Compute the return on assets. Discuss the relative profitability of the company based on your results. Compute the working capital and current ratio. Evaluate the relative liquidity of the company based on your results. Compute the debt to assets ratio and the free cash flow for your company. Analyze the results and comment on the relative solvency of the company. Discuss how the financial statements are used in your current role or a position you would like to hold. How might these aid you in managerial decision making? Review Grading Guide in the Week 1 Syllabus for specific requirements. Excel Spreadsheets must be printable on one page (either portrait or landscape format). Show your work in Microsoft® Word or Excel® Complete calculations/computations using Microsoft® Word or Excel®. Include the four financial statements along with your assignment. Format your assignment consistent with APA guidelines. Click the Assignment Files tab to submit your assignment.
PLEASE USE REFERENCE
Kimmel, P.D., Weygandt, J.J., & Kieso, D.E. (2016). Accounting: Tools for business decision making (6th ed.). Hoboken, NJ: John Wiley & Sons.