Explore BrainMass

Explore BrainMass

    Financial Stmt Diffs nonprofit, HCA vs Ascension Health

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Source of Revenue: Review of Financial Statements

    Download and review the financial statements of Ascension Health, a nonprofit, religious-based healthcare system, from

    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?

    © BrainMass Inc. brainmass.com June 4, 2020, 4:40 am ad1c9bdddf

    Solution Preview

    AH = Ascension Health
    HCA = HCA Holdings Inc.
    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.
    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 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.