Purchase Solution

Financial Stmt Diffs nonprofit, HCA vs Ascension Health

Not what you're looking for?

Ask Custom Question

Source of Revenue: Review of Financial Statements

Download and review the financial statements of Ascension Health, a nonprofit, religious-based healthcare system, from
http://www.ascensionhealth.org/index.php?option=com_content&view=article
&id=45&Itemid=160.

Download and review the financial statements of HCA, Inc., a for-profit healthcare system, from http://phx.corporate-ir.net/phoenix.zhtml?c=63489&p=irol-reports.

Part I

Review the companies' balance sheets, statements of income/operations, and statements of cash flows. Identify and describe five similarities and five differences between the two companies' financial statements.

Part II

After analyzing the statements, respond to the following:
1.You have reviewed information on three financial statements for two respective organizations. In what way is each statement useful? Which statement seems to you most useful?
2.If, due to time constraints, your organization could only prepare one financial statement, which one—balance sheet, statement of income, or statement of cash flow—would you recommend? Why?

Purchase this Solution

Solution Summary

Your discussion is 463 words and indicates major ways they are the same and different. How each statement is useful and then one is selected as the larger priority. Reasons are given.

Solution Preview

AH = Ascension Health
HCA = HCA Holdings Inc.
Similarities:
1. The balance sheet of both firms show current and noncurrent assets and current and noncurrent liabilities.
2. They both reduce revenue by the provision for bad debts to get to Net Revenue.
3. They both report three categories on their cash flow statement: operating, investing and financing.
4. The reconciling items from Net Income (Excess of Rev over Exp) in the operating section of the cash flow statement are similar, such as adding back depreciation.
5. They both have consolidated financial statements and non-controlling interests meaning they control at least one other firm but not at the 100% level.
Differences:
1. The difference between total assets and total liabilities is "Net Assets" on AH and "Stockholder's Deficit" on HCA.
2. AH has temporary and permanently ...

Solution provided by:
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution


Free BrainMass Quizzes
MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.