Reference no: EM133595233

Assignment:

Purpose and Process:

For this HAT you will use a worksheet template toan income statement, balance sheet, and ratio analysis for a fictional medical center using data provided. Students will then use this data to write an analysis of Alanson Medical Center's financial position.

Alanson Medical Center is a 65-bed, not-for-profit hospital located in the city of Alanson, a small city located in northern Michigan. Use the companion spreadsheet to complete this Hallmark Assessment Task (HAT).

Product:

• Entries for Alanson Medical Center's 2022 income statement are listed on the companion spreadsheet on the "Income Statement" tab in alphabetical order. Use the entries to construct an income statement for the year ended December 31, 2022. Once the entries are on the correct rows, complete the appropriate calculation on the spreadsheet to determine "Net Patient Service Revenue," "Total Operating Expenses," and "Net Income (Excess of Revenues over Expenses)." All work for this question will be completed on the companion spreadsheet on the "Income Statement" tab.
• Entries for Alanson Medical Center's balance sheet dated December 31, 2022 are listed on the companion spreadsheet on the "Balance Sheet" tab in alphabetical order. Use the entries to construct a balance sheet as of December 31, 2022. Once the entries are on the correct rows, complete the appropriate calculation on the spreadsheet to determine "Total Current Assets," "Net Property, Plant & Equipment," "Total Current Liabilities," "Total Liabilities," "Net Equity," and "Total Liabilities & Equity." Calculate equity (net assets) using the information provided. All work for this question will be completed on the companion spreadsheet on the "Balance Sheet" tab.
• Use the income statement and balance sheet you constructed in parts one and two to calculate the ratios listed on the companion spreadsheet on the "Ratio Analysis" tab. For each ratio identified calculate the ratio in Column D and place your answer in Column E. All work for this question will be completed on the companion spreadsheet on the "Ratio Analysis" tab.
• Use the ratios you calculated in part three to conduct a trend analysis comparing the ratios to their actual value in 2021, provided on the companion spreadsheet on the "Ratio Analysis" tab in Column F. For each ratio, identify how the ratio has changed over time. The response to this question should be provided in a Word document.
• Use the ratios you calculated in part three to conduct a comparative analysis, comparing the ratios to industry standard values, provided on the companion spreadsheet on the "Ratio Analysis" tab in Column G. For each ration, identify how the ratio compares to the industry standard. The response to this question should be provided in a Word document.
• Provide a written response analyzing Alanson Medical Center's financial position as of December 31, 2022. The response to this question should be provided in a Word document.