Question 2: Example 14B: Trend Analysis Trend analysis allows comparison of figures over time. Reread the chapter text about trend analysis and examine the difference columns shown in Table 143. Practice Exercise 14-2: Trend Analysis The worksheet below shows the assets of Hospital A over two years. Perform trend analysis for the assets of Hospital A. Hospital A Year 1 Year 2 Current Assets $1,600,000 $ 2,000,000 Property, Plant, and Equipment 6,000,000 7,500,000 Other Assets 400.000 500.000 Total Assets $8,000,000 $10,000,000 Solution to Practice Exercise 14-2 Hospital A Year 1 Year 2 Difference Current Assets $1,600,000 $ 2,000,000 $ 400,000 25% Property, Plant, and Equipment 6,000,000 7,500,000 1,500,000 25% Other Assets 400.000 500.000 100.000 25% Total Assets $8,000,000 $10,000,000 $2,000,000 Note: The worksheet below shows Hospital A with both common sizing and trend analysis. Hospital A Year 1 Year 2 Difference Current Assets $1,600,000 20% $2,000,000 20% $400,000 25% Property, Plant, and Equipment 6,000,000 75% 7,500,000 75% 1,500,000 25% Other Assets 400.000 5% 500.000 5% 100.000 25% Total Assets $8,000,000 100% $10,000,000 100% $2,000,000 Now it's Your Turn: Assignment Exercise 14-2: Trend Analysis Refer to the Metropolis Health System (MHS) comparative financial statements at the back of the Examples and Exercises section. Perform trend analysis on the MHS Statement of Revenue and Expenses. Question 2: Example 14B: Trend Analysis Trend analysis allows comparison of figures over time. Reread the chapter text about trend analysis and examine the difference columns shown in Table 143. Practice Exercise 14-2: Trend Analysis The worksheet below shows the assets of Hospital A over two years. Perform trend analysis for the assets of Hospital A. Hospital A Year 1 Year 2 Current Assets $1,600,000 $ 2,000,000 Property, Plant, and Equipment 6,000,000 7,500,000 Other Assets 400.000 500.000 Total Assets $8,000,000 $10,000,000 Solution to Practice Exercise 14-2 Hospital A Year 1 Year 2 Difference Current Assets $1,600,000 $ 2,000,000 $ 400,000 25% Property, Plant, and Equipment 6,000,000 7,500,000 1,500,000 25% Other Assets 400.000 500.000 100.000 25% Total Assets $8,000,000 $10,000,000 $2,000,000 Note: The worksheet below shows Hospital A with both common sizing and trend analysis. Hospital A Year 1 Year 2 Difference Current Assets $1,600,000 20% $2,000,000 20% $400,000 25% Property, Plant, and Equipment 6,000,000 75% 7,500,000 75% 1,500,000 25% Other Assets 400.000 5% 500.000 5% 100.000 25% Total Assets $8,000,000 100% $10,000,000 100% $2,000,000 Now it's Your Turn: Assignment Exercise 14-2: Trend Analysis Refer to the Metropolis Health System (MHS) comparative financial statements at the back of the Examples and Exercises section. Perform trend analysis on the MHS Statement of Revenue and Expenses
