In chapter 7 of your Waxman text, complete Question #4 on p. 199

Review the income statement provided in table 7.2 and address the following questions:

1. From your analysis, you understand that the net margin for the organization has shown strong growth over the past year. What factor/s is/are driving this improved performance?
2. What concerns do you have regarding the current financial performance of this organization? As an executive leader within this organization, what priority issues should this organization address?
3. Is your impression of the reported financial performance generally favorable or unfavorable? Why?

Chapter 7. Financial Statements and the DNP: Essential Knowledge for Success 189 TABLE 7.2 Income Statement (Profit and Loss) 3/17 3/16 1-Year Change Growth $150,000 $142,500 $62,500 $49,350 $118.000 $96,500 $2,500 $2.150 $333,000 $290,500 $7,500 1 5% $13,150 + 27% $21,500 1 22% $350 16% $42.500 1 15% $18,000 $21.500 $3,500 + 16% $71.000 $60,800 ($10.200) 1 17% $35,400 $38,400 $3,000! 8% $13,600 $12,500 ($1,100) 1 9% $138.000 $133,200 ($4,800) 1 4% $195,000 $157,300 $45,700 1 24% ($ in 000's) Gross Patient Revenues Routine services Inpatient ancillary Outpatient ancillary Other revenue Total Gross Revenue Deductions From Revenue Bad debt Goverment allowance DRG Insurance contracts mgd, care Chantable allowances Total Deductions Net Revenue From Patient Operating Expenses Salaries Benefits Supplies Medical fees Purchased services Maintenance Professional liability Other Depreciation Financing costs Total Operating Expenses Net Income From Operations (pretax) % of Net Revenue (Margin) (Net Income/Net Revenue) 7% $90,250 $79,200 ($11,050) 1 14% $34,000 $31,800 (2,800) 1 $27,200 $13.600 ($13,600) 100% $4,300 $3,200 ($1,100) 34% $8,400 $5,520 ($2,880) 1 52% $7.500 $6,200 ($1,300) 21% $1,400 $1,350 ($50) 1 4% $700 $350 ($350) 1 100% $7.400 $6.200 ($1,200) 1 19% $6,400 $6.100 ($300) 1 5% $187.550 $153,520 $34,030 1 22% $7.450 $3,780 $3,670 1 97% 3.82% 2.40% 1.42% DRG, diagnosis-related group. shop or cafeteria admission. Lastly, there may be other revenue that comes into the organization by way of a gift