The Advanced Practice Nurse

1781 Words8 Pages
Financial Statement Analysis This paper discusses the advanced practice nurse (APN) roles and need to act as a financial participant within healthcare(Butts &Rich, 2015). County General Hospital, a nonprofit hospital that serves 200,000 persons surrounding rural communities provided financial statements representing fiscal year end (FYE) 2014, 2013 for analysis. The APN will extrapolate ratios that depict liquidity, efficiency, profitability, and solvency. The implications of the balance sheet, income statement, and statement of cash flows will be discussed in terms of general impact on general business entity as well as the specific impacts of this data on CGH. Lastly, a brief financial forecast will be developed by the APN for CGH…show more content…
Significance of Financial Statements Financial statements provide financial decision makers with varied information presented in specific formats that is easily attainable tools to evaluate financial health. Three of the necessary financial statements are the statement of financial position or the balance sheet, operating statement also called income statement, and the statement of cash flows (Finkler, Jones, and Kovner, 2013). The balance sheet (BS) is significant to a business due to its ability to provide a “snapshot” of a company’s assets and liabilities at any given time. This financial document is a cursory representation of a business’s health. The use of comparative BS whether it be yearly, quarterly, or monthly provides the interested parties a tool to observe trends that are positive, negative, or neutral to a company’s financial health (Finkler, Jones, and Koyner,2013) . The cash flow (CFS) statement represenst revenue and expenses for a specific period of time (Sticker, 2012). . The CFS details exactly where cash is being derived and spent and may be generated at any time for analysis (Finkler, Jones, and Koyner, 2013). The income statement (IS) also known as the profit & loss statement provides the net gain or net loss of a business entity. The importance of the income statement is to evaluate profitability of a company (Finkler, Jones, and Koyner, 2013). The best use of the IS,
Open Document