Financial Statement Analysis:

You have just taken the position of Assistant to the Vice President for Finance for a Medical Center, a 240-bed acute care hospital. The Vice President has asked you to study the organization's recent financial statements - Profit and Loss, Balance Sheet, Cash Flow (sheets are included in the files below) and provide your analysis of the organizations strength and vulnerabilities. Considering the accounting and financial tools and skills used in technology healthcare, how would you go about this analysis?

Income Statement, Balance Sheet and Cash Flow Sheets below

Balance Sheet:

____________________________________________________________________

Period Ending Dec 31, 2015 Dec 31, 2014 Dec 31, 2013

Assets:

Current Assets:

Cash & Cash Equivalents 10,923,000 7,495,000 7,276,000

Short Term Investments 1,988,000 1,741,000 1,937,000

Net Receivables 13,324,000 9,750,000 7,050,000

Inventory - - -

Other Current Assets - - -

Total Current Assets - - -

Long Term Investments 18,792,000 18,827,000 19,605,000

Property Plant and Equip. 4,861,000 4,418,000 4,010,000

Goodwill 44,453,000 32,940,000 31,604,000

Intangible Assets 8,391,000 3,669,000 3,844,000

Accumulated Amortization - - -

Other Assets 7,791,000 6,986,000 6,126,000

Deferred Long Term Asset Charges 860,000 556,000 430,000

Total Assets 111,383,000 86,382,000 81,882,000

Liabilities:

________________________________________________________________

Current Liabilities:

Accounts Payable 26,324,000 21,287,000 19,033,000

Short/Current Long Term Debt 6,634,000 1,399,000 1,969,000

Other Current Liabilities - - -

Total Current Liabilities - - -

Long Term Debt 32,094,000 17,406,000 16,860,000

Other Liabilities 11,775,000 9,810,000 9,269,000

Deferred Long Term Liability Charges 5,729,000 4,037,000 3,396,000

Minority Interest (105,000) - -

Negative Goodwill - - -

Total Liabilities 75,817,000 52,540,000 48,558,000

Stockholders' Equity:

_________________________________________________________________

Misc Stocks Options Warrants 1,736,000 1,388,000 1,175,000

Redeemable Preferred Stock - - -

Preferred Stock - - -

Common Stock 10,000 10,000 10,000

Retained Earnings 37,125,000 33,836,000 33,047,000

Treasury Stock - - -

Capital Surplus 29,000 - -

Other Stockholder Equity (3,334,000) (1,392,000) (908,000)

Total Stockholder Equity 33,830,000 32,454,000 32,149,000

Net Tangible Assets (19,014,000) (4,155,000) (3,299,000)

___________________________________________________________________

Cash Flow

___________________________________________________________________

Period Ending Dec 31, 2015 Dec 31, 2014 Dec 31, 2013

Net Income 5,813,000 5,619,000 5,625,000

Operating Activities, Cash Flows Provided By or Used In:

____________________________________________________________________

Depreciation 693,000 1,478,000 1,375,000

Adjustments To Net Income 98,000 51,000) 249,000

Changes In Accounts Receivables (591,000) (911,000) (317,000)

Changes In Liabilities 4,102,000 2,506,000 849,000

Changes In Inventories - - -

Changes/Operating Activities (1,430,000) (590,000) (838,000)

Total Cash Flow/Operating Activities 9,740,000 8,051,000 6,991,000

Investing Activities, Cash Flows Provided By or Used In:

__________________________________________________________________________

Capital Expenditures (1,556,000) (1,525,000) (1,307,000)

Investments (531,000) 799,000 (1,611,000)

Other Cash flows/Investing Activities (16,308,000) (1,808,000) (171,000)

Total Cash Flows/Investing Activities (18,395,000) (2,534,000) (3,089,000)

Financing Activities, Cash Flows Provided By or Used In:

__________________________________________________________________________

Dividends Paid (1,786,000) (1,362,000) (1,056,000)

Sale Purchase of Stock (916,000) (3,546,000) (4,046,000)

Net Borrowings 14,607,000 391,000 152,000

Other Cash Flows/Financing Activitie 334,000 (776,000) 4,000

Total Cash Flows/Financing Activities 12,239,000 (5,293,000) (4,946,000)

Effect of Exchange Rate Changes (156,000) (5,000) (86,000)

______________________________________________________________________________

Income Statement

______________________________________________________________________________

Period Ending Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015

Total Revenue 43,599,000 41,489,000 6,263,000 35,756,000

Cost of Revenue 26,542,000 25,618,000 26,026,000 25,689,000

Gross Profit 17,057,000 15,871,000 10,237,000 10,067,000

Operating Expenses:

________________________________________________________________________________

Research Development - - - -

Selling General/Administrativ - - - -

Non Recurring - - - -

Others 14,589,000 12,853,000 7,342,000 7,427,000

_________________________________________________________________________________

Total Operating Expenses - - - -

Operating Income or Loss 2,468,000 3,018,000 2,895,000 2,640,000

Income from Continuing Operations:

__________________________________________________________________________________

Total Other Income/Expenses Net - - - -

Earnings before Interest & Taxes 2,468,000 3,018,000 2,895,000 2,640,000

Interest Expense 260,000 229,000 151,000 150,000

Income before Tax 2,208,000 2,789,000 2,744,000 2,490,000

Income Tax Expense 956,000 1,171,000 1,159,000 1,077,000

Minority Interest (34,000) (21,000) - -

__________________________________________________________________________________

Net Income from Continuing Ops 1,252,000 1,618,000 1,585,000 1,413,000

Non recurring Events:

__________________________________________________________________________________

Discontinued Operations - - - -

Extraordinary Items - - - -

Effect Of Accounting Changes - - - -

Other Items - - - -

Net Income 1,218,000 1,597,000 1,585,000 1,413,000