Financial Worksheet

Patten-Fuller Financial Statement

Terresita McGee, Shannon Johnson, Jessica Stagg, and Michelle Wade

HCS/405

February 11, 2014

Brooke Adams

Patten-Fuller Financial Statement

Patton-Fuller is a non-for profit health care organization that focuses on providing services for the community such as emergency care, surgery, and much more. This paper reviews the company’s annual report and summarizes the differences between the audited and unaudited balance sheet and income statements. This paper also discusses the company’s financial ratios, the effect of revenue sources on financial reporting in a hospital, and how the hospital’s revenues and expenses are grouped for planning and control.

A balance sheet shows the company's information concerning the financial accounts that include the assets, liabilities, and the equity. There are two different types of reports, audited and unaudited. An audited report shows accurate financial accounts and an unaudited report shows inaccurate financial accounts. After looking over the Patten-Fuller balance sheets, there are a few differences in the accounts. One difference is that in 2009 there was a total difference of $101,200 in assets, $20,000 difference in liabilities, and $1,200 difference in equity. In 2008 there was a difference of $100,000 in assets and equity, and the numbers came out the same for liabilities.

The statement of revenue and expense indicates the company’s earnings and expenses for a specific period. After reviewing the company’s Statement of Revenue and Expense, there is a difference of $1,000 in 2009. This amount appears in the provision for doubtful accounts. The audited report shows a balance of $14,797 and the unaudited report shows a balance of $13,797. The result of this is a net income difference of $254 between the audited report and the unaudited report.

Financial ratios combine two elements of a financial statement to determine the company’s financial position. The two elements are...