Patton Fuller Essay

880 WordsAug 11, 20114 Pages
Patton-fuller community hospital case study Abstract Finance, understanding how it affects the smallest business to the largest organization, is the origin to financial success in businesses. According to Gitman (2006), finance is the art and science of managing money. Virtually every individual business and large organization, Be the organization for profit or non-profit, depends on the rates at which these entities earn, or raise money, and the rate at which they spend or invest these earned monies. Understanding these financial processes will enable the financial manager, or even the non-financial managers to more effectively interact with financial personnel, processes, and procedures. Patton-fuller community hospital case…show more content…
Are the financial ratios for the hospital improving? What is the effect of revenue sources on the financial reporting at the hospital? Patton Fuller appears, according to the profitability ratios, encountering hardships, after evaluating the return on total assets and operating margins, the organization is declining tremendously, producing income in contrast to its costs. The 2008 and 2009 expense report includes assets from audited and unaudited annual reports. The balance sheet comprehend the T account is equally valuable to examine. There are two sides of the T account report, the left side indicates the debits and right side indicates the credits. According to the 2009 unaudited balance sheet, a wrong amount of $13,797,000 was entered: after a corrected amount entered of $14, 797,000, the numbers reveal a discrepancy of $1,000,000. The operations income was $6,890,000 and the entry $3,110,000, reveling a discrepancy of $2, 540,000. A negative effect will result in the debit side, as wrong account entries on the balance sheet. The organization will overspend, and the resources allocated according to these improper entries, as mistakes in managerial decisions will occur. How are the hospital’s revenues and expenses grouped for planning and control? There are five different groups for revenue and expenses. These groups
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