Assignment 2: Source of Revenue: Review of Financial Statements Download and review the financial statements of Ascension Health, a nonprofit, religious-based healthcare system, from http://www.ascensionhealth.org/index.php?option=com_content&view=article &id=45&Itemid=160. Download and review the financial statements of HCA Holdings, Inc., a for-profit healthcare system. You can find the financial statements on one the many sites where such information is available, such as Zacks Investment Research or MarketWatch. Search the site with HCA Holdings' ticker symbol ("HCA") and then look for the "Financial" tab or section when you come to the sites HCA Holdings page. Part I Review the companies' balance sheets, statements of income/operations, and statements of cash flows. Identify and describe five similarities and five differences between the two companies' financial statements. Part II After analyzing the statements, respond to the following: You have reviewed information on three financial statements for two respective organizations. In what way is each statement useful? Which statement seems to you most useful? If, due to time constraints, your organization could only prepare one financial statement, which onebalance sheet, statement of income, or statement of cash flowwould you recommend? Why? By Tuesday, November 10, 2015, submit your 23-page report to the W3: Assignment 2 Dropbox.ncome Statements Free Quantitative Report for HCA Get Report Annual Income Statement Quarterly Income Statement Fiscal Year end for HCA HOLDINGS falls in the month of December . All items in Millions except EPS data. 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10 Sales 36,918 34,182 33,013 29,682 30,683 Cost Of Goods 6,262 5,970 5,717 5,179 4,961 Gross Profit 30,656 28,212 27,296 24,503 25,722 Selling & Adminstrative & Depr. & Amort Expenses 25,048 23,391 22,444 19,907 21,275 Income After Depreciation & Amortization 5,608 4,821 4,852 4,596 4,447 Non-Operating Income -384 -27 -160 1,002 -119 Interest Expense 1,743 1,848 1,798 2,037 2,097 Pretax Income 3,481 2,946 2,894 3,561 2,231 Income Taxes 1,108 950 888 719 658 Minority Interest 498 440 401 377 366 Investment Gains/Losses 0 0 0 0 0 Other Income/Charges 0 0 0 0 0 Income From Cont. Operations 2,373 1,996 2,006 2,842 1,573 Extras & Discontinued Operations 0 0 0 0 0 Net Income 1,875 1,556 1,605 2,465 1,207 Depreciation Footnote 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10 Income Before Depreciation & Amortization 7,470 6,629 6,593 6,131 5,949 Depreciation & Amortization (Cash Flow) 1,862 1,808 1,741 1,535 1,502 Income After Depreciation & Amortization 5,608 4,821 4,852 4,596 4,447 Earnings Per Share Data 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10 Average Shares 450.35 461.91 459.40 495.94 97.08 Diluted EPS Before Non-Recurring Items 4.70 3.41 3.71 2.85 12.43 Diluted Net EPS 4.16 3.37 3.49 4.97 12.43 EPS Diluted (Quarterly) Balance Sheet Free Quantitative Report for HCA Get Report Annual Income Statement Quarterly Income Statement Fiscal Year End for HCA HOLDINGS falls in the month of December. All items in Millions except Per Share data. 12/31/2014 12/31/2013 12/31/2012 12/31/2011 12/31/2010 Assets Cash & Equivalents 566 414 705 373 411 Receivables 5,694 5,208 4,672 4,533 3,832 Notes Receivable 0 0 0 0 0 Inventories 1,279 1,179 1,086 1,054 897 Other Current Assets 1,391 1,236 1,300 1,273 1,779 Total Current Assets 8,930 8,037 7,763 7,233 6,919 Net Property & Equipment 14,355 13,619 13,185 12,834 11,352 Investments & Advances 659 569 619 649 1,511 Other Non-Current Assets 0 0 0 0 0 Deferred Charges 219 237 290 290 374 Intangibles 6,416 5,903 5,539 5,251 2,693 Deposits & Other Assets 620 466 679 641 1,003 Total Assets 31,199 28,831 28,075 26,898 23,852 Liabilities & Shareholders Equity 12/31/2014 12/31/2013 12/31/2012 12/31/2011 12/31/2010 Notes Payable 0 0 0 0 0 Accounts Payable 2,035 1,803 1,768 1,597 1,537 Current Portion Long-Term Debt 338 786 1,435 1,407 592 Current Portion Capital Leases 0 0 0 0 0 Accrued Expenses 3,107 3,106 2,969 2,550 2,140 Income Taxes Payable 0 0 0 0 0 Other Current Liabilities 0 0 0 0 0 Total Current Liabilities 5,480 5,695 6,172 5,554 4,269 Mortgages 0 0 0 0 0 Deferred Taxes/Income 0 0 0 0 0 Convertible Debt 0 0 0 0 0 Long-Term Debt 29,307 27,590 27,495 25,645 27,633 Non-Current Capital Leases 0 0 0 0 0 Other Non-Current Liabilities 2,910 2,474 2,749 2,713 2,744 Minority Interest (Liabilities) 0 0 0 0 0 Total Liabilities 37,697 35,759 36,416 33,912 34,646 Shareholders Equity 12/31/2014 12/31/2013 12/31/2012 12/31/2011 12/31/2010 Preferred Stock 0 0 0 0 0 Common Stock (Par) 4 4 4 4 1 Capital Surplus 0 1,386 1,753 1,601 389 Retained Earnings -7,575 -9,403 -10,960 -9,423 -11,888 Other Equity 1,073 1,085 862 804 704 Treasury Stock 0 0 0 0 0 Total Shareholder's Equity -6,498 -6,928 -8,341 -7,014 -10,794 Total Liabilities & Shareholder's Equity 31,199 28,831 28,075 26,898 23,852 Total Common Equity -6,498 -6,928 -8,341 -7,014 -10,794 Shares Outstanding 420.40 447.80 442.90 436.50 97.00 Book Value Per Share -15.46 -15.47 -18.83 -16.07 -111.28 Cash flow Statements Free Quantitative Report for HCA Get Report Annual Cash Flow Statement Fiscal Year End for HCA HOLDINGS falls in the month of December. All data in Millions except Per Share data. Cash Flow From Operations, Investments & Financial Activities 12/31/2014 12/31/2013 12/31/2012 12/31/2011 12/31/2010 Cash Flow From Operations, Investments & Financial Activities Net Income (Loss) 2,373.00 1,996.00 2,006.00 2,842.00 1,573.00 Depreciation/Amortization & Depletion 1,862.00 1,808.00 1,741.00 1,535.00 1,502.00 Net Change from Assets/Liabilities -3,433.00 -4,272.00 -3,663.00 -2,119.00 -2,847.00 Net Cash from Discontinued Operations 0.00 0.00 0.00 0.00 0.00 Other Operating Activities 3,646.00 4,148.00 4,091.00 1,675.00 2,857.00 Net Cash From Operating Activities 4,448.00 3,680.00 4,175.00 3,933.00 3,085.00 Property & Equipment -2,176.00 -1,943.00 -1,862.00 -1,679.00 -1,325.00 Acquisition/ Disposition of Subsidiaries -715.00 -448.00 -228.00 -1,401.00 -196.00 Investments -37.00 36.00 16.00 80.00 472.00 Other Investing Activities 10.00 9.00 11.00 5.00 10.00 Net Cash from Investing Activities -2,918.00 -2,346.00 -2,063.00 -2,995.00 -1,039.00 Uses of Funds 12/31/2014 12/31/2013 12/31/2012 12/31/2011 12/31/2010 Issuance (Repurchase) of Capital Stock -1,750.00 -500.00 0.00 1,003.00 0.00 Issuance (Repayment) of Debt 778.00 -692.00 1,724.00 -1,589.00 2,533.00 Increase (Decrease) Short-Term Debt -73.00 -5.00 -62.00 -92.00 -50.00 Payment of Dividends & Other Distributions 0.00 0.00 0.00 0.00 0.00 Other Financing Activities -333.00 -428.00 -3,442.00 -298.00 -4,430.00 Net Cash from Financing Activities -1,378.00 -1,625.00 -1,780.00 -976.00 -1,947.00 Effect of Exchange Rate Changes 0.00 0.00 0.00 0.00 0.00 Net Change In Cash & Equivalents 152.00 -291.00 332.00 -38.00 99.00 Cash at Beginning of Period 414.00 705.00 373.00 411.00 312.00 Cash at End of Period 566.00 414.00 705.00 373.00 411.00 Diluted Net EPS 4.16 3.37 3.49 4.97 12.43