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Conduct a financial overview of both hospital statements for FY'05, FY'08, and FY'09 by applying the following ratios and provide your interpretation of each result.
Conduct a financial overview of both hospital statements for FY'05, FY'08, and FY'09 by applying the following ratios and provide your interpretation of each result. Show individual formulas to support your responses. Current ratio Days cash on hand Days receivable Operating margins Return on Total Assets From your review of the financial statements and use of the concepts learned, provide a five year analysis of the financial strengths and weaknesses of the organization. Identify concepts used and show which hospital has a stronger financial profile. Provide formulas to support your response. In examining the hospital's cash and investments over the periods indicate what were the sources and uses of cash over the last three periods? Support your responses. On the basis of the limited amount of information provided in the case, what would be your recommendations to a board to correct any obvious financial weaknesses noted? What are the major problems that can be encountered when performing a financial statement analysis? State any differences between the two hospitals in their reporting. Describe your understanding of how depreciation is treated between the balance sheet, the statement of operations and the statement of cash flow. Show equation
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