financial accounting focuses on communicating organizational-level data in the business’s financial statements aimed at external users, while managerial accounting focuses on creating comprehensive departmental plans and forecasts to be used internally by managers. – Essaylink

Recall that financial accounting focuses on communicating organizational-level data in the business’s financial statements aimed at external users, while managerial accounting focuses on creating comprehensive departmental plans and forecasts to be used internally by managers.
To perform a meaningful analysis of the three most common financial statements (income statements, balance sheets, and cash flow statements), health care managers must use financial ratios. Financial ratios are used to determine an organization’s profitability, asset management, and liquidity. They can also inform budgeting decisions and be used for comparative purposes (for example, to compare an organization’s current results to historical results or to the results of peer organizations).
For each scenario, consider how you would proceed if you were the healthcare manager of the organization. Be sure to include the following details to justify your thinking:
Do you agree with reasoning and decisions made in each scenario? Why or why not?
Are these scenarios in the realm of managerial accounting, financial accounting, or both? Why do think this?
How would you proceed in each situation? What information would you want to have, and why?
Here are the three scenarios for your consideration:
Abraham has just taken a new job as a health care manager at a large hospital. During the interview process, he was told that one of his responsibilities is to analyze the organization’s financial statements and determine the average collection period (ACP). He determines that the hospital’s ACP is 43 days. The industry average is 23 days. Abraham emails his superior asking if this is a cause for concern.
Mimi is the healthcare manager at a physical rehabilitation facility that has recently expanded its facilities to accommodate more patients. At the annual budgeting meeting, Mimi suggests the organization continue using a fixed budgeting strategy for the year ahead.
Makayla is told by the head of her department that their unit must increase its return on assets (ROA) ratio from 3% to 5% by next year. If they do not, they risk losing certain benefits. Makayla goes to her office and thinks about how she could do this. First, she thinks about ways to increase revenue. Then, she notices that there are several assets that produce very little revenue. She suggests selling these items to help the department achieve its target ROA.
Your paper should be two to three pages in length (not including the required title page and reference pages)
Please include references.
Thank you!

Reviews, comments, and love from our customers and community:

Article Writing

Keep doing what you do, I am really impressed by the work done.

Alexender

Researcher

PowerPoint Presentation

I am speechless…WoW! Thank you so much!

Stacy V.

Part-time student

Dissertation & Thesis

This was a very well-written paper. Great work fast.

M.H.H. Tony

Student

Annotated Bibliography

I love working with this company. You always go above and beyond and exceed my expectations every time.

Francisca N.

Student

Book Report / Review

I received my order wayyyyyyy sooner than I expected. Couldn’t ask for more.

Mary J.

Student

Essay (Any Type)

On time, perfect paper

Prof. Kate (Ph.D)

Student

Case Study

Awesome! Great papers, and early!

Kaylin Green

Student

Proofreading & Editing

Thank you Dr. Rebecca for editing my essays! She completed my task literally in 3 hours. For sure will work with her again, she is great and follows all instructions

Rebecca L.

Researcher

Critical Thinking / Review

Extremely thorough summary, understanding and examples found for social science readings, with edits made as needed and on time. Transparent

Arnold W.

Customer

Coursework

Perfect!

Joshua W.

Student

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>