...Introduction Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2007. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.5 million. All revenues were collected in cash during the year and all expenses other than depreciation were paid in cash. My report will contain the answers to the following questions: 1. Construct Brandywine’s 2007 income statement. 2. What were Brandywine’s 2007 net income, total profit margin, and cash flow? 3. Suppose the company changed its depreciation calculation procedures (still within GAAP) such that its depreciation expense doubled. How would this change affect Brandywine’s net income, total profit margin, and cash flow? 4. Explain the difference between cash and accrual accounting. Be sure to include a discussion of the revenue recognition and matching principles. 5. Explain the difference between equity section of a not-for-profit business and an investor-owned business. 1. Construct Brandywine’s 2007 income statement. |Brandywine Homecare | | | |Income Statement | | | |Year Ended December 31, 2007 | | ...
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...Financial Statement Analysis In this paper, the writer will perform an analysis of Universal Health Services (UHS) financial statements. The organization has a group arrangement, in which they are the parent corporation of numerous subsidiaries. The company focuses on acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. (Universal Health Services, 2015) Universal Health Services, a New York Stock Exchange company, has its headquarters located in Pennsylvania but has several locations throughout the United States including Puerto Rico, U.S Virgin Islands, and the United Kingdom. (Universal Health Services, 2015) Financial Well Being of Universal Health Services The health care industry can be a lucrative business, for UHS it is seen in their annual report provided to stakeholders. The report informs stakeholders what the company has done to expand its financial standing in order to grow within the year. UHS reached many goals within their past fiscal year that ended in December of 2014 both financially and as a corporation. First their net revenue reached 8.07 billion an all time high for the organization’s 35 years of business compared to last year. Looking at the adjusted net income that is attributable to UHS it increased from $452.1 million in 2013 to $581.8 million in 2014 which led to a 29 percent increase. The company’s stock price valued 37 percent, closing 2014 at $111.26 per share. In...
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...Pain Physician, Volume 4, Number 4, pp 343-348 2001, American Society of Interventional Pain Physicians® ISSN 1533-3159 Case Study Radiation Exposure to a Physician Performing Flouroscopically Guided Caudal Epidural Steroid Injections Kenneth P. Botwin, MD*, Eric D. Freeman, DO, Robert D. Gruber, DO, Francisco M. Torres-Ramos, MD, Constantine G. Bouchlas, MD, Joseph T. Sanelli, DO, and Ashraf F. Hanna, MD This study was designed to investigate radiation exposure to a physician performing fluoroscopically guided caudal epidural steroid injections. The prospective study design included 100 consecutive fluoroscopically guided caudal epidural steroid injections performed on patients with radiculitis from either herniated nucleus pulposus or lumbar spinal stenosis. Radiation exposure was monitored with the assistance of a radiological technologist (RT) who allocated four dosimetry badges to all physicians performing fluoroscopically guided caudal epidural steroid injections on consecutive patients being treated for radicular pain. The badges were placed on the ring finger, glasses and both the inside and outside of the lead apron worn by the physician. In addition, the RTs also wore a marked badge outside his/her lead apron. A control badge was placed 67 inches away from the fluoroscopy table, and a second control badge was located in a desk over 500 feet away from the procedure, to monitor ambient radiation. The average fluoroscopy time per procedure was 12.55 seconds. The...
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...HSA 525 WEEK 6 A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=hsa-525-week-6 Visit Our website: http://hwsoloutions.com/ Product Description HSA 525 Week 6, SOLUTION 14-2, 14-3 Solutions 13-3,13-4.1,13-4.2 HSA 525 Week_6_Assignment 2 Financial Ratio The financial ratios are used for the purpose of determining the financial performance of an organization. There are various financial ratios which are taken into consideration by the financial analysts. The most important ratio which shall be taken into consideration is the net profit ratio. The net profit ratio of an organization is a particular ratio which is determined by the organization by deducting the expenses incurred by it from the revenues generated by it. If the net profit ratio of an organization is lower then, it can be said that, the organization does not have the ability or control over its expenses to a larger level. The organization compares its net profit with the competitors. The organization which is higher net profit ratio is considered to be better in comparison to the competitors of the organization (Shim & Siegel, 2007). There are various organizations which earn a lot of revenue but, if an organization will not have control over its expenses then, there will be the situation that, the organization will not be in the position to have profitability. The success of an organization is judged by its profitability other than anything else. Meeting Financial Obligations The...
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...HSA 525 WEEK 4 A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=hsa-525-week-4 Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION HSA 525 Week 4, week 4 analysis preview Introduction The organization Universal Health Services is a major health care organization in the United States of America. The organization provides various health care services. This paper will discuss financial health care of Universal Health Services. The strategy to improve the financial health of the organization will also be taken into consideration in the present situation. The financial analysis of the organization will be carried out for a period of three previous years. Review of the Financial Statements The financial statements of the organization will be used by various stakeholders. The stakeholders who will use the financial statements of the organization will include employees, investors, shareholders and the management of the organization (Shim & Siegel, 2007). In relation to the financial statements of the organization certain things are required to be taken into consideration. The revenues generated by the organization, the profits earned by the organization and the level of current assets and current liabilities of the organization are the crucial things which are necessary for the purpose of above mentioned stakeholders. In relation to the review of financial performance of the organization, it is provided that, the revenues...
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...Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2007. Expenses other than depreciation totaled 75 percent of revenues, which is $9 million, and depreciation expense was $1.5 million. Income statement is the one of the three financial statements. The other two are the balance sheet and the statement of the cash flows. Brandywine Homecare’s total profit margin of 12.5 percent shows that the homecare makes 12.5 cents on every dollar of total revenues. If the company doubled its depreciation, both net income and profit margin would be zero. The cash flow will be the same for both cases, which is $3 million. Cash accounting and accrual accounting are two similar methods of maintaining accurate accounting records. Accrual accounting is considered to be the standard accounting practice for most companies. Equity is the ownership claim against total assets. For investor-owned businesses, equity is the amount of owner-supplied financing. Equity for not-for-profit businesses is the amount of capital supplied by the, charitable contributions or other organization. Brandywine Homecare Brandywine Homecare, a not-for-profit business, has reported revenues of $12 million in 2007. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.5 million. It is reported that all revenues were collected in cash during the year and all expenses other than depreciation were paid in cash. Brandywine Homecare’s 2007 Income Statement ...
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...HSA 525 WEEK 2 ASSIGNMENT A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=hsa-525-week-2-assignment Visit Our website: http://hwsoloutions.com/ Product Description HSA 525 Week 2 Assignment, Solution to Assignment Exercise 4–1 Contracted Contractual Payer Full Rate Rate Allowance FHP $72.00 – $35.70 = $36.30 HPHP 72.00 – 58.85 = 13.15 Solution to Assignment Exercise 4–2 Other Managed Public Commercial Care Medicare Medicaid Programs Patients Insurance Contracts (1) Intensive Care Unit X (2) Laboratory X One suggested solution is as follows. Physical/ Cardiac/ Occupational Pulmonary Therapy Rehab Training Administrative Nursing Salaries X X Physical Therapist Salaries X Occupational Therapist Salaries X Solution to Assignment Exercise 5–2 Yes I believe the expense grouping………… HSA 525 Week 2 Assignment, Solution to Assignment Exercise 4–1 Contracted Contractual Payer Full Rate Rate Allowance FHP $72.00 – $35.70 = $36.30 HPHP 72.00 – 58.85 = 13.15 Solution to Assignment Exercise 4–2 Other Managed Public Commercial Care Medicare Medicaid Programs Patients Insurance Contracts (1) Intensive Care Unit X (2) Laboratory X One suggested solution is as follows. Physical/ Cardiac/ Occupational Pulmonary Therapy Rehab Training Administrative Nursing Salaries X X Physical Therapist Salaries X Occupational Therapist Salaries X Solution to Assignment Exercise 5–2 Yes I believe the expense grouping………………………………………. HSA 525...
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...HSA 525 WEEK 3 ASSIGNMENT A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=hsa-525-week-3-assignment Visit Our website: http://hwsoloutions.com/ Product Description HSA 525 Week 3 Assignment, Solution 6.1 Allocation of Indirect Costs to Radiology Departments CC#557 CC#558 CC#559 CC#560 CC#561 Indirect Cost Centers Indirect Costs Allocation Basis Diagnostic Radiology Ultrasound Nuclear Medicine CT Scan Radiation Therapy Total Transporters $550,000 A $110,000 $132,000 $88,000 $154,000 $66,000 $550,000 Receptionists $360,000 B $60,000 $36,000 $72,000 $108,000 $84,000 $360,000 File Room Clerks $117,000 C $90,000 $3,375 $13,500 $4,500 $5,625 $117,000 Managers $240,000 B $40,000 $24,000 $48,000 $72,000 $56,000 $240,000 Solution 7.1 Analyzing Mixed Costs 1 Calculation of Variable and Fixed Costs through high low method: Highest-Volume (in September) 1100 Total Cost at Highest Volume $7,150 Lowest-Volume (in August) 100 Total Cost at Lowest Volume $1,010 Variable Cost = (High Vol.-Low Vol.)/(Total Cost at High-Total Cost at Low) $6.14 per pack Solution 7.2 1 Calculating the Contribution Margin: Revenue $1,210,000 Variable Expenses $205,000 Fixed Expenses $1,100,000 HSA 525 Week 3 Assignment Solution 6.1 6.2 7.1 7.2 HSA 525 Week 3 Assignment, Solution 6.1 Allocation of Indirect Costs to Radiology Departments CC#557 CC#558 CC#559 CC#560 CC#561 Indirect Cost Centers Indirect Costs Allocation Basis Diagnostic Radiology Ultrasound...
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...A++PAPER;http://www.homeworkproviders.com/shop/hsa-525-week-3-assignment/ HSA 525 WEEK 3 ASSIGNMENT HSA 525 Week 3 Assignment, Solution 6.1 Allocation of Indirect Costs to Radiology Departments CC#557 CC#558 CC#559 CC#560 CC#561 Indirect Cost Centers Indirect Costs Allocation Basis Diagnostic Radiology Ultrasound Nuclear Medicine CT Scan Radiation Therapy Total Transporters $550,000 A $110,000 $132,000 $88,000 $154,000 $66,000 $550,000 Receptionists $360,000 B $60,000 $36,000 $72,000 $108,000 $84,000 $360,000 File Room Clerks $117,000 C $90,000 $3,375 $13,500 $4,500 $5,625 $117,000 Managers $240,000 B $40,000 $24,000 $48,000 $72,000 $56,000 $240,000 Solution 7.1 Analyzing Mixed Costs 1 Calculation of Variable and Fixed Costs through high low method: Highest-Volume (in September) 1100 Total Cost at Highest Volume $7,150 Lowest-Volume (in August) 100 Total Cost at Lowest Volume $1,010 Variable Cost = (High Vol.-Low Vol.)/(Total Cost at High-Total Cost at Low) $6.14 per pack Solution 7.2 1 Calculating the Contribution Margin: Revenue $1,210,000 Variable Expenses $205,000 Fixed Expenses $1,100,000 HSA 525 Week 3 Assignment Solution 6.1 6.2 7.1 7.2 HSA 525 Week 3 Assignment, Solution 6.1 Allocation of Indirect Costs to Radiology Departments CC#557 CC#558 CC#559 CC#560 CC#561 Indirect Cost Centers Indirect Costs Allocation Basis Diagnostic Radiology Ultrasound Nuclear Medicine CT Scan Radiation...
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...HSA 525 Homework Week 9 16.1 - On a typical day, Park Place Clinic writes $1,000 in checks. It generally takes four days for those checks to clear. Each day the clinic typically receives $1,000 in checks that take three days to clear. What is the clinics average net float? 16.2 - Drugs 'R Us operates a mail order pharmaceutical business on the West Coast. The firm receives an average of $325,000 in payments per day. On average, it takes four days for the firm to receive payment, from the time customers mail their checks to the time the firm receives and processes them. A lockbox system that consists of 10 local depository banks and a concentration bank in San Francisco would cost $6,500 per month. Under this system, customers' checks would be received at the lockbox locations one day after they are mailed, and the daily total would be wired to the concentration bank at a cost of $9.75 each. Assume that the firm could earn 10 percent on marketable securities and that there are 260 working days and hence 260 transfers from each of the ten lockbox locations per year. (a) What is the total annual cost of operating the lockbox system? (b) What is the dollar benefit of the system to Drugs ‘R Us? (c) Should the firm initiate the lockbox system? 16.4 - Langley Clinics, Inc., buys $400,000 in medical supplies each year (at gross prices) from its major suppliers, Consolidated Services, which offers Langley terms of 2.5/10, net 45. Currently, Langley is paying the supplier...
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...Assignment 1- Brandywine Homecare Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2007. Expenses other than depreciation totaled 75 percent of revenues, which is $9 million, and depreciation expense was $1.5 million. Income statement is the one of the three financial statements. The other two are the balance sheet and the statement of the cash flows. Brandywine Homecare’s total profit margin of 12.5 percent shows that the homecare makes 12.5 cents on every dollar of total revenues. If the company doubled its depreciation, both net income and profit margin would be zero. The cash flow will be the same for both cases, which is $3 million. Cash accounting and accrual accounting are two similar methods of maintaining accurate accounting records. Accrual accounting is considered to be the standard accounting practice for most companies. Equity is the ownership claim against total assets. For investor-owned businesses, equity is the amount of owner-supplied financing. Equity for not-for-profit businesses is the amount of capital supplied by the government grants, charitable contributions or other organization. Brandywine Homecare Brandywine Homecare, a not-for-profit business, has reported revenues of $12 million in 2007. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.5 million. It is reported that all revenues were collected in cash during the year and all expenses other than depreciation...
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...16.1 The checks that Park Place writes create disbursement float, which is “good” float. The clinic has $1,000 x 4 days = $4,000 in disbursement float. The checks that the clinic receives create collections float, which is “bad” float. The clinic has $1,000 x 3 days = $3,000 in collections float. The clinics net float is $1,000: Net float = Disbursement (good) float – Collections (bad) float = $4,000 – $3,000 = $1,000. In essence, the balance on the firm’s books is $1,000 less than the balance shown on the bank’s books. 16.2 a. The annual cost of operating the lockbox system is $103,350: Total cost = (Fixed cost per month x 12) + (Number of locations x Number of transfers x Cost per transfer) = ($6,500 x 12) + (10 x 260 x $9.75) = $78,000 + $25,350 = $103,350. b. The annual benefit is $97,500: Benefit = Number of days saved x Payments per day x Carrying cost = 3 x $325,000 x 0.10 = $97,500. c. In this situation, the annual cost of the lockbox system is greater than the annual benefit, and hence the lockbox system should not be initiated. 16.3 a. Seattle must pay the bills in 20 days if it wants to take advantage of the discount of three percent. If it wants to take the costly trade credit (forego the discount), it must pay the bills in 60 days. b. Using the approximate cost formula, the cost is 27.8%. Discount percent ...
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...Running Head: MERGER Merger Introduction There are certain organizations around the world which get engaged in the activities regarding merger. The health care organizations also get engaged in merger with other health care organizations. In the present paper, discussion shall be made regarding merger in health care organizations. There are certain financial drivers which are required to be considered by the health care organizations to move forward with merger. The financial planning and the success of the merger are to be taken into consideration by considering the financial statements of the organization after the merger has been carried out by the organizations. Financial Drivers Causing Merger There are three financial drivers which cause mergers within the health care organizations. The first financial driver causing merger is healthy corporate balance sheets. The second financial driver is low interest rates and inexpensive refinancing opportunities. The third financial driver is marginal growth of the organization (Buckley & Ghauri, 2002). All these financial drivers work in a positive manner for promoting mergers within the organization. In relation to merger, the organizations look at the potential health corporate balance sheets. In relation to the potential healthy balance sheets, the organizations look to get merged with another organization which has huge numbers in the balance sheet so that, the size of the balance...
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...HSA 525-Health Financial Management Assignment # 4 – Medical Associates November 27, 2011 Medical Associates: Equity cost of capital, DCF, CAPM, risk, capital budgeting Medical Associates is a large for-profit group practice. Its dividends are expected to grow at a constant rate of 7% per year into the foreseeable future. The firm's last dividend (D0) was $2, and its current stock price is $23. The firm's beta coefficient is 1.6; the rate of return on 20-year T-bonds currently is 9%; the expected rate of return is 13%. The firm's target capital structure calls for 50% debt financing, the interest rate required on the business's new debt is 10%, and its tax rate is 40%. 1. Calculate Medical Associates' cost of equity estimate using the DCF method. Using the DCF method Cost of Equity = D1/P0 + g D1 = expected dividend= D0 X (1+g) = 2 X 1.07 = 2.14 P0 current price = $23 g = growth rate = 7% Cost of equity = 2.14/23 + 7% = 16.30% 2. Calculate the cost of equity estimate using CAPM. Using CAPM Cost of equity = Rf + (Rm-Rf) beta Rf = risk free rate = 9% Rm = return on market = 13% beta = 1.6 Cost of equity = 9% + (13%-9%) 1.6 = 15.4% 3. On the basis of your answers to #1 & #2, what is your final estimate for the firm's cost of equity? We take the average of the two costs as the final estimate Final estimate is the average of the two = (16.3%+15.4%)/2 = 15.85% 4. Calculate the firm's estimate for corporate cost of capital. Cost...
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...ASSIGNMENT 2: HSA 525 Ruger Clinic Raymond Barber Dr. Japheth Kaluyu 1 What is the value of the cost pool? The Housekeeping department of Ruger Clinic consisted of $100,000 in total budgeted costs for the year of 2007. The cost pool is basically direct costs of one support department. In the case of Ruger Clinic, the cost pool's value is $100 K. 2aWhat is the allocation rate if patient services revenue is used as the cost driver? The cost pool, which must be found first, is the total cost of the Housekeeping department which is $100,000, while the patient services revenue was 5,000.00. The Allocation Rate equals the cost pool divided by the patient services revenue. That would be 100,000 divided by 5,000.00(100,000/5,000). The Allocation Rate is 0.02 for each of dollar of patient services revenue. = 100,000/ 5,000,000 = 0.02 for each dollar of patient services revenue. 2 b What is the allocation rate if hours of housekeeping services department is used as the cost driver? Allocation rate = cost pool/ hours of housekeeping department = 100,000/ 5000 = $20 per hour of services provided. 3 What is a cost-volume-profit (CVP) analysis and why is it useful to health services managers? Profit analysis is an analytical technique used to analyze the effects of volume changes on costs, and hence this analysis...
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