/* nursingwritersbureau.com theme functions */ /* nursingwritersbureau.com theme functions */ {"id":4603,"date":"2020-08-18T11:39:52","date_gmt":"2020-08-18T11:39:52","guid":{"rendered":"https:\/\/nursingwritersbureau.com\/?p=4603"},"modified":"2020-08-18T11:39:52","modified_gmt":"2020-08-18T11:39:52","slug":"basic-financial-calculations","status":"publish","type":"post","link":"https:\/\/nursingwritersbureau.com\/basic-financial-calculations\/","title":{"rendered":"Basic Financial Calculations"},"content":{"rendered":"
\n
\n

Assignment: Application: Basic Financial Calculations<\/p>\n

Before you learned algebra, you first had to learn basic addition, subtraction, multiplication, and division. Similarly, before you can fully understand the finances of a health care organization, you first need to be able to apply basic financial calculations used in almost all domains of accounting. A firm grasp of these accounting concepts will better enable you to confidently make budgetary and resource decisions. In this Assignment, you complete calculations that will familiarize you with some of the necessary basic accounting concepts. \u00a0Based on the information and financial statements below, calculate the following financial ratios in an Excel Spreadsheet: \u2022Current Ratio \u00a0= Total Current Assets \/ Total Current Liabilities \u2022Days of Cash on Hand \u00a0= Cash \/ (Total Operating Expense \/ 365 days) \u2022Age of Accounts Receivable \u00a0= Accounts Receivable \/ (Net Patient Service Revenue \/ 365) \u2022Age of Physical Plant \u00a0= Accumulated Depreciation \/ Depreciation Expense \u2022Debt to Equity Ratio \u00a0= [Long Term] Debt \/ Net Assets \u2022Debt to Assets Ratio \u00a0= [Long Term] Debt \/ Total Assets \u2022Collection Rate \u00a0= Net Patient Service Revenue \/ Gross Patient Service Revenue \u2022Operating Margin Ratio \u00a0= Gain or (Loss) from Operations \/ Net Patient Service Revenue \u00a0\u00a0Note: For those Assignments in this course that require you to perform calculations you must: \u00a0\u2022Use the ‘Week 3 Application Assignment Template’ from your Learning Resources \u2022Show all your calculations and formulas in the spreadsheet \u00a0\u00a0A title and reference page are NOT needed in this assignment. Put your name and assignment at the top of the Excel spreadsheet. \u00a0For those not comfortable with the use of Microsoft Excel, this week\u2019s Optional Resources suggest several tutorials. \u00a0To prepare: \u00a0\u2022Review the information in this week\u2019s Learning Resources dealing with ratios and how they are calculated. \u2022View the Week 3 Application Assignment Tutorial: Ratio Calculations, (video) provided in this week\u2019s Learning Resources. \u2022Use the Week 3 Application (Scenario) Assignment Template, provided in this week\u2019s Learning Resources, to complete this assignment. \u00a0\u00a0\u2022Review the Statement of Revenues and Expenses in the Week 3 application (scenario) assignment template. With the information, calculate the financial ratios.<\/p>\n

Required Readings \u00a0Baker, J. J., Baker, R. W., & Dworkin, N. R. \u00a0(2018). Health care finance: Basic \u00a0tools for nonfinancial managers (5th ed.). Burlington, MA: Jones and \u00a0Bartlett Learning. \u00a0\u2022Chapter 4, \u201cAssets, Liabilities, and Net Worth\u201d (pp. 33-36) \u00a0\u00a0\u00a0In this chapter, you are introduced to the meaning of assets, liabilities, and net worth. You explore the relationship between the three and how they must be balanced if an organization is to be successful. \u00a0\u00a0\u00a0\u00a0\u2022Chapter 6, \u201cExpenses (Outflows)\u201d (pp. 47-54) \u00a0\u00a0\u00a0The focus of this chapter is expenses and how they differ from costs. It highlights how costs should be reported and how expenses can be grouped for more effective planning and control. \u00a0\u00a0\u00a0\u00a0\u2022Chapter 9, \u201cUnderstanding Inventory and Depreciation Concepts\u201d (pp. 81-93) \u00a0\u00a0\u00a0This chapter examines the relationship between inventory and the cost of goods. It demonstrates how to calculate inventory turnover and product depreciation. \u00a0\u00a0\u00a0\u00a0\u2022Chapter 11, \u201cReporting as a Tool\u201d (pp. 119-125) \u00a0\u00a0\u00a0This chapter describes the basic financial reports and how they are used in financial decision making. The four key financial statements are the balance sheet, the statement of revenue, and expense, the statement of fund balance or net worth, and the statement of cash flows. \u00a0\u00a0\u00a0\u00a0\u00a0Zelman, W., McCue, M., & Glick, N. (2009). Financial management of health care organizations: An introduction to fundamental tools, concepts, and applications (3rd ed.). Hoboken, NJ: Jossey-Bass. \u00a0Retrieved from the Walden Library databases. \u00a0\u2022Chapter 2, \u201cHealth Care Financial Statements\u201d (pp. 25\u201386) \u00a0\u00a0\u00a0This chapter describes the shared four basic financial statements of all organizations. The authors relate the basics to business-oriented and non-for-profit health organizations. \u00a0\u00a0\u00a0\u00a0\u2022Chapter 3, \u201cPrinciples and Practices of Health Care Accounting\u201d (pp. 87\u2013120) \u00a0\u00a0\u00a0This chapter explores the accounting practices and principles of health care. The authors detail the rules for recording transactions and the process of recording and developing financial statements. \u00a0\u00a0\u00a0\u00a0\u2022Chapter 4, \u201cFinancial Statement Analysis\u201d (pp. 121\u2013186) \u00a0\u00a0\u00a0This chapter goes into detail about the three types of analysis used in financial statements of health care organizations: horizontal analysis, vertical (common-size) analysis, and ratio analysis. This chapter also explains the categories of ratios and how to apply them.<\/p>\n<\/div>\n<\/div>\n

<\/div>\n
\n
\n