For this assignment, you will refer to the financial information you collected for the FP and NFP in M1: Assignment 2. You will also refer to the information on the fictional facility, Sakasegawa Memorial Hospital (SMH), for which financial data is supplied.
You will use ratio analysis to conduct a review of each organization’s financial information. You will carry out an analysis of the key components of the balance sheet and income statement. Then, you will address the differences in the accounting statements of NFPs and FPs, including an examination of operational issues.
Here are some questions you can use to direct your review:
Which organization is bigger? Consider assets, liabilities, and equity.
Which organization has more debt? Consider debt and risk.
Which organization is making money? Consider patient care revenue, patient days, and hospital beds.
How much money comes from sources other than patient revenue? Consider contributions and research.
How does the structure differ between FP and NFP facilities? Consider organizational type and overall structure.
Write a 3- to 5-page paper in Microsoft Word format. All written assignments and responses should follow APA rules for attributing sources. Use the following file naming convention: LastnameFirstInitial_M1_A3.doc. By Friday, March 8, 2013, submit your assignment to the M1: Assignment 3 Dropbox.
Voluntary Discussion
As you work on your course project, you may want to discuss your work with your classmates. The Discussion Area below will be available throughout the week where you can share your thoughts about your project, seek your classmates’ views on it, and offer feedback on their work. This activity is optional and not graded.
Assignment 3 Grading Criteria
Maximum Points
Summarized differences between the NFP, FP, and SMH financial data.
12
Summarized differences between NFP, FP, and SMH organization operations.
12
Supported assertions with reasons, examples, and references to reliable sources.
12
Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources, displayed accurate spelling, grammar, and punctuation.
4
Total:
40
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