Week 2 will discuss financial accounting, which involves the preparation of a business’s financial statements. It will introduce basic financial accounting concepts and explain how organizations report financial performance, specifically revenues, costs, and profits. It will cover the reporting of financial status, which stems from an organization’s assets, liabilities, and equity, and the reporting of cash flows.
Your Learning Objectives for the Week:
- Develop, analyze, and draw conclusions from a healthcare organization’s budget.
- Conduct a financial statement analysis and identify strategic and operational strengths and vulnerabilities.
Download50 %3 of 6 topics completeShow data table for This chart displays the number of completed topics versus the total number of topics within module Week 2..
List of Topics and Sub-Modules for Week 2
- Recognizing IncomeWeb Page
- Income StatementWeb Page
- Balance Sheet and Cash Flow ReportWeb Page
- Week 2 Knowledge CheckQuiz Due June 9 at 11:59 PM
- Week 2 DiscussionDiscussion Topic Due June 10 at 11:59 PMBefore beginning work on this discussion forum, please review the link “Doing Discussion Questions Right,” the expanded grading rubric for the forum, and any specific instructions for this topic.
Before the end of the unit, begin commenting on at least two of your classmates’ responses. You can ask technical questions or respond generally to the overall experience. Be objective, clear, and concise. Always use constructive language, even in criticism, to work toward the goal of positive progress. Submit your responses in the Discussion Area.- Select two different types of HCOs and consider the most positive and most negative effects of using the cash versus accrual accounting method for the business.
- Discuss the effect of the choices on revenue recognition and matching principles.
- Compare and contrast the following items, pointing out their key elements: gross revenue and net revenue, patient service revenue and other revenue, and charity care and bad debt losses on the income sheet
- To support your work, use your course and textbook readings and also use the South University Online Library. As in all assignments, cite your sources in your work and provide references for the citations in APA format.
Your initial posting should be addressed at 300-500 words. Submit your document to this Discussion Area by the due date assigned. Be sure to cite your sources using APA format.
Respond to your peers throughout the Week. Justify your answers with examples, research, and reasoning. Follow up posts need to be submitted by the end of the week.
Use the following rubric as a guide to complete your discussion responses.
- Week 2 ProjectAssignment Due June 14 at 11:59 PMBefore beginning work on this assignment, please review the expanded grading rubric for specific instructions relating to content and formatting.
Review the following information on balance sheet analysis and business calculations:
Balance Sheet Analysis
Calculating Debt Ratio in Excel
Calculating Working Capital
Review the following balance sheet:
Best Care Health Maintenance Organization (HMO)Balance SheetJune 30, 2011 (in thousands) Assets Current assets:
Cash
Net premiums receivable
Supplies $2,737 $821 $387 Total current assets $3,945 $3,945 Net property and equipment $5,924 Total assets $9,869 Liabilities and Net Assets Accounts payable—medical services $2,145 Accrued expenses $929 Notes payable $382 Total current liabilities $3,456 $3,456 Long-term debt $4,295 Total liabilities $7,751 $7,751 Total assets $9,869 Net assets-unrestricted (equity) $2,118 Total liabilities and net assets $9,869Answer the following questions after your analysis:- What is Best Care’s net working capital for 2011? Show your work.
- What is Best Care’s debt ratio? Show your work.
- To support your work, use your course and textbook readings and also use the South University Online Library. As in all assignments, cite your sources in your work and provide references for the citations in APA format.
Submission Details: - Your assignment should be addressed in a 2- to 3-page document.
- Submit your document to this appropriate Submissions Area by the due date assigned.
