Omega Health Foundation's

Omega Health Foundation is a non-profit organization on one side and a taxable subsidiary on the other hand. To evaluate the performance of Omega Health Foundation and its financial position, financial information and related data are considered

The main financial statements considered in the analysis of the financial position of Omega Health Foundation (OHF) are the balance sheet, income statement, and the cash flow statement. The balance sheet is a snapshot in time. It shows all the assets owned and liabilities owed for a company. It also shows the amount of equity or ownership that is paid for by investors. The income statement looks at the entire year. It starts with revenues and then deducts expenses for net income. The cash flow statement shows where the cash is really coming by breaking down cash flow into cash from operations, investing and financing. There are advantages and disadvantages to analyzing financial statements for investment decisions.

According to the figures reflected in the balance sheet, the organization is not generating profit. The assets value of OHF in 2009 is equal to the liabilities against the same year estimated at US Dollars 186,594,000.

Net Income vs. Cash Flows

Net cash flows from operating activities differ from net income for three major reasons which are (a) noncash expenses, (b) timing differences, and (c) non-operating gains and losses.

The income statement provides insight related to how the wealth position of OHF changed through operations. The calculation of income is the excess of revenue over expenses. The statement reflect a decrease in the patient revenue which is estimated at US Dollars 160,574,000/- in fiscal year 2009 compared to US Dollars 162,323,000/- in 2008.

The statement of cash flows is designed to give information on the flow of funds within an entity, and to summarize the sources that make funds available and the uses for those funds during a given period. A statement of cash flows can be...