Reference no: EM131473515

Part I: Calculating Working Capital

Locate and select financial statements for a particular health care organization. Analyze the working capital of the organization.
Consider the impact of regulations, business plans, and economic dynamics on the working capital requirements of the business. Is there sufficient working capital for business operations of the organization you selected?

Part II: Calculating Variance Analysis

Instructions:

The following are budgeted and actual revenues and expenses for a hospital.

                                                Budgeted                                         Actual

Revenues

Surgical Volume                              2,300                                                  2,600

Gift Shop Revenues                                   $18,000                                              $19,000

Surgery Revenues                          $589,500                                           $852,750

Parking Revenues                          $17,000                                              $19,000

Expenses

Patients Days                                   26,000                                                25,000

Pharmacy                                          $119,000                                           $158,000

Misc Supplies                                   $68,000                                              $795,600

Fixed Overhead Costs                    $832,000                                           $890,000

Using an Excel spreadsheet to show your calculations:

1. Determine the total variance between the planned and actual budgets for Surgical Volume.State the variance for all values as favorable or unfavorable.

2. Determine the total variance between the planned and actual budgets for Patient Days.State the variance for all values as favorable or unfavorable.

3. Determine the service-related variance for Surgical Volume.

4. Determine the service-related variance for Patient Days.

5. Prepare a flexible budget estimate. Present aside-by-side budget, flexible budget estimate, and the actual Surgical Revenues.

6. Prepare a flexible budget estimate. Present aside-by-side budget, flexible budget estimate, and the actual Patient Expenses.

7. Determine what variances are due to change in volume and what variances are due to change in rates.

Attachment:- Variance Analysis.rar