Fairwood Medical Case

Net Sales – totaled $4,485,000.00 for year 6, and grew +33.3% or $1,495,000.00 between years 6 to 7.

ACC/291 March 25,2012   Liquidity Ratios Current Ratio: Current Assets/Current Liabilities 2005 $14,555,092/ $6,974,752= 2.09:1 2004 $14,643,456/ $6,029,696=2.43:1 Acid Test Ratio: Cash+ Short-Term Investments + Receivables (Net)/ Current Liabilities 2005 $305,563 + $283,583 +$6,133,663/ $6,974,752= .96:1 2004 $357,216 + $133,504 + $5,775,104/ $6,029,696=1.04:1 Receivables Turnover: Net Credit Sales/ Average Net Receivables 2005 $50,823,685/ ($6,133,663 + 5,775,104/2) $50,823,685/ $5,954,384= 8.54 times 2004 $46,044,288/($5,775,104+6,569,344/2) $46,044,288/ $6,172,224=7,46 times Inventory Turnover: Cost of Goods Sold/ Average Inventory 2005 $42,037,624/ ($7,850,970+$7,854,112/2) $42,037,624/$7,852,541=5.35 times

The total revenue of any firm is calculated by adding the total sales of good and services in a given period mostly one year as explained by Austin, (2002). According to St Jude children’s Research Hospital’s financial statement for the year ending June 2014, the total revenue totalled to $ 410,148,655. It was achieved by the addition of net patient service revenue ($ 104,014,142), research grants and contracts ($ 93,786,845), net investment income ($ 201,569,845), net assets released from restrictions (0) and other revenues ($ 10,778,398).

When the CEO looked at the financial statement for the previous year he found that they had a loss of $256,000 (Rakish et

Operating expenses: I will not analyze every subsection, but will focus on important parts that paint a clear picture of why a gain or loss occurred in the revenue section. Advertising money spent between year 6 and 7 increased 37.5% or $8,940. While the increase in spending is a weakness, it is a strength because the company demonstrated positive growth during the same period; likely due to the advertising of new product. The only negative finding for the company during the analyzed period is the 37.5% increase in money spent to grow sales. The number seems rather large but the increase in money spent to advertise was under $10k and yielded an increase of $447k. Advertising clearly was a good invest

Also, the supplies cost was lower than what was budgeted. The budget was estimated around 45,000 with supplies left over at the end of the month. At the end of the month there was way less supplies left over then there was expected to be. A lot more patient’s needed to stay in the hospital for longer periods of time due to observation. This meant that we were using more supplies to help with the health of these patients. These patients were a priority to the hospital even though some of them did not have insurance. They were already going through a lot emotional toll, we made sure that they were comfortable. With more patients in the emergency room more supplies were needed. We also had to make more room for these patients and beds were borrowed. For example, the need for needles double in this month. Even though this may seemed like it might not be a lot everything adds up. When they patients were kept for observation more supplies and equipment were used. One thing that also made our budget not be successful is because a lot of our medical machines weren’t

This course is designed as an introduction to the terminology, processes, functions, and financial reports commonly encountered in health care operations. This course introduces the concepts of basic managerial financial functions, such as budgeting, reimbursement methods, and the responsibilities of health care financial

For 2009, FLEV x Spread = 0.09989 x 1.84 = 18.4% = Non-operating return for 2009.

Increase in current liabilities Substantial increase in current liabilities weakened the company’s liquidity position. Its current liabilities were US$2,063.94 million at the end of FY2010, a 48.09% increase compared to the previous year. However, its current assets recorded a marginal increase of 25.07% - from US$1,770.02 million at the end of FY2009 to US$2,213.72 million at the end of FY2010. Following this, the company’s current ratio declined from 1.27 at the end of the FY2009 to 1.07 at the end of FY2010. A lower current ratio indicates that the company is in a weak financial position, and it may find it difficult to meet its day-to-day obligations.

The revenue is $600,600*1.2= $720,720. The variable cost changes as sales increases and fixed cost stays the same, the gross profit is $175,500. After tax, the net income is $100,557.

The April YTD Recurring NOI was $192.2 Million (M), favorable to budget by $26.6M, and favorable to FY15 YTD by $22.8M. The April YTD Recurring EBITDA was $274.1M, favorable to budget by $20.7M, and favorable by FY15 YTD $23.1M

The net loss in the first quarter of 2015 was $14.4 million. This was caused from declining revenues and making lump-sum pension payments of $45.1 million to reduce pension liabilities.

Revenue Budgets within the health care field are defined as the listing of expected revenues of an organization usually on a monthly, quarterly, and annual basis. (Gapenski, 2013). Therefore being said within this timeframe it is required for all budgets to be documented, data pulled, and

Lastly, the revenue budget is the final component of the operating budget which projects the income the organization will receive for providing care. Although nurse managers/leaders may not be involved in developing the revenue budget, having knowledge about it is essential for great decision-making.

net sales: $1,000,000 cost of goods sold: $700,000 rent: $20,000 wages: $100,000 other operating expenses: $50,000 net sales – all operating expenses = 530,000