Financial Statement Summary

Patton-Fuller Financial Statement Summary

Felicia Johnson, Rashena Kemp, Shameka Smith

HCS/405

February 23, 2012

Ruthie McDaniel

Patton-Fuller Financial Statement Summary

In review of the Patton-Fuller Community Hospital audited and unaudited financial statements, involve some differences. For example, the 2009 and 2008 balance sheets show a discrepancy in patients accounts received. The 2009 unaudited statement show $59,787,000.00, and the audited statement show $58,787,000.00. These two figures differ by $1,000,000.00. Another difference is found in the statement of revenue and expense. The difference appears under the provision for doubtful accounts. The 2009 unaudited statement show $13,797,000.00, and the audited statement show $14,797,000.00. These two figures display a $1,000,000.00 difference as well. As a result, the 2009 unaudited net income is $627,000.00 and the 2009 audited net income is $373,000.00 in the red.

The financial ratios for the hospital appear to show no signs of improvement in the liquidity ratio area. However, there appears to be slight signs of improvement in the profitability ratio area. The current and quick ratios of the liquidity ratio show the hospitals capability to pay off short-term debts. Viewing and comparison of these ratios show the hospital are experiencing difficulty maintaining a safety net. Both ratios clearly show a three-fold reduction, thus indicating the hospital is experiencing difficulty paying off short-term debts. The current ratio for 2009 is 5.41 to 1, while the current ratio for 2008 is 15.52 to 1. The quick ratio for 2009 is 4.64 to 1, while the 2008 show 14.52 to 1.

The Patton-Fuller hospital profitability ratio consists of the operating margins and the return on total assets. The net profit margins ratio for 2009 is 0.0015 and -0.0382 for 2008. The profitable dollar amount for 2009 is $57.42 and -$1342.50 for 2008. These figures clearly show slight signs of improvement by turning a previous year...