Reference no: EM133631343

Homework: Finance Project

Finalize your Healthcare Budget Request by completing the following:

Part I: Financial Statement Calculations and Analysis:

A. Open the Excel Homework and navigate to the "W10/11A6 Financials" worksheet.

B. You have 2 options for completing this Homework as noted in the Excel Homework Workbook. The Healthways Financial Statement worksheet is easier to use as it already has the data entered. A couple of things to note on the Healthways Financial Statements worksheet.

1. Using the Healthcare Budget Request Guide for guidance, conduct analyses as directed on either your organization's financial statements or those provided in the Healthways Financial Statement worksheet. Your analysis will include a spreadsheet calculation of financial statement ratios.

2. If you can not get your organization's financial statements and decide to use the Healthways statements, you are pretending that these numbers represent your organization's financial statements.

3. Revised 8-12-2021 Horizontal Analysis Homework.

4. In cell D40 we are looking at the difference between FY2018 and 2017. We think of the difference as simple subtraction, but this is confusing because of the negative number. So, therefore, the income of 3758 minus the negative number actually adds the two numbers together. However, it you use the same formula with cell addresses it will take care of this for you. =B40-C40

A. Percentage change for total operating expense and net income

1. To offer some direction on how to calculate the percentage change.

2. For total operating expense as an example. The calculation is a given year's total operating expense (2018) minus the prior year's total operating expense (2017), divided by the prior year's total operating expense (2017). Formula to use (D38/C38) or (B38-C38)/C38 The resulting figure is then multiplied by 100 or you can use the % cell format function.

B. Return on Assets.

1. Refer to your guide for an explanation of how to do the calculation.

2. The formula is: Return on Assets = Net Earnings (income)/ Total Assets

3. Just be sure you are using the correct numbers as identified above. Hint: Net Earnings is in row 40 and total assets is in row 38

C. Interpretation and analysis

1. The following note is found on your spreadsheet, but it is intended to guide you in writing your narrative analysis in part 2. You can make some notes on the spreadsheet to help you write your analysis, but it won't be graded.

2. In your narrative analysis that you will write in the Healthcare Budget Request Template, you should address:

3. Income Statement

4. Balances

5. Expense per Encounter

6. Total Operating Revenue per Encounter

7. Operating Margin

8. Days Cash On Hand

Part II: Summary of Analyses and Interpretation of Results:

Create a brief (1- to 2-page) description of your analyses. *Be sure to address the following in your summary:

A. The sub-title for this section in the Healthcare Budget Request document is

B. W10/11A6 Organizational Statement Analyses

C. Describe the results of each statement analysis. What do the results of each analysis mean?

D. Income Statement

E. Balances

F. Expense per Encounter

G. Total Operating Revenue per Encounter

H. Operating Margin

I. Days Cash On Hand

J. What does your complete financial statement analysis suggest about the financial health of the organization?

K. If using your current organization's data, does your analysis help describe any observed organizational behaviors or actions? Explain.

L. What assumptions have you made in your analyses?

M. What implications do these analyses have for your proposed healthcare product or service?

N. *I would use these questions to make headings in my analyses. don't use these exact words, just abbreviate. For example, the second bullet: "What does your complete financial statement analysis suggest about the financial health of the organization?" this subtitle could be "Financial Health of the Organization"

Part III: Summary of Work and Final Healthcare Budget Request

Compile and summarize your work. You have already done this work, just make any corrections. You should use the Healthcare Budget Request document that we have been using all term. Your final Healthcare Budget Request should include:

A. A final version of your Executive Summary

B. (W2A2 Executive Summary)

C. A final version of your projected expenses and revenues

D. (W4A3 Projected Expenses and Revenues (Five Year)

E. A product/service budget for the launch and the first 5 years

F. (W6A4 Projected Budget (Five Year)

G. Summary of Analyses and Interpretation of Results

H. (W10/11A6 Organizational Statement Analyses)

I. A 3- to 5-slide PowerPoint presentation containing the final version of your elevator speech, incorporating selling points from your analyses that you believe make the business case for nurse entrepreneurship and leadership's commitment to your proposed healthcare product or service.

J. example:Hi Ms. Smith, I am Debbie Sullivan from our ICU. I know that you are aware of the severe nursing shortage we are experiencing in our ICU. I have developed a plan to retain our nurses while being able to show how we can see a return on investment of 75% in year 1. It will only take 6 months to pay back the initial investment to start up the program. I can also show you a cost/benefit analysis. Could I call your office to set up a time to meet with you to provide details of my plan?

K. Submit the actual PowerPoint as well as including screen shots in this document.

L. For the power point, you only need to include a cover slide, a slide with the elevator speech (20-60 secs of narration, read it out loud to be sure it fits within this timeframe), and a closing slide. Previously I suggested 5 slides, but it is not necessary, so either one will be fine.

M. The elevator speech should be persuasive, remember you are trying to get an organizational leader's attention. You are persuading the leader to pique interest and want to know more about your project topic.

N. The elevator speech is not analyzing Healthways Clinic. The analysis is what will make the business case for YOUR project.

O. For clarification. You should write out your elevator speech on one of the slides. You could add it as speaker notes, but let me know that you have done this because I would not see it unless I open the file. Be sure to attach the power point file.