Healthcare
- Submitted by: appois
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- Category: Science
- Date Submitted: 01/24/2011 03:18 PM
- Pages: 5
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Omega Health Foundation
According to William O. Cleverley, and Andrew E. Cameron (2007) Omega Health Foundation consist of Omega hospital, Able Memorial hospitals, and various related medical service providers. Omega Health Foundation has appointed Lenji Jacob as a consultant to evaluate the Omega Health Foundation’s finance. The paper will report principles of finance and the relationship with Omega Health Foundation’s financial position, compare and contrast net income and cash flows, compare and contrast market value and book value of assets, address the weaknesses and strengths, provide recommendations, and request additional information required to further evaluate Omega health foundation.
Principles of Finance and the relationship with Omega Health Foundation’s finance
According to William O. Cleverley, and Andrew E. Cameron (2007) principles of finance primarily includes four elements balance sheets, statement of revenues, and expenses, statement of cash flows, and statement of changes in fund balances or net assets.
Balance sheets
Balance sheets consist of current assets, and current liabilities. Current assets include cash and cash equivalents, accounts receivables, prepaid expenses, property plant and equipment, deferred financing costs, deferred third reimbursements, many more items of the similar trait (Cleverley & Cameron, 2007). Current liabilities include current portion of the “long-term debt,” notes payable, accounts payable, accrued expenses, accrued wages, salaries, and fees, payments to third party payers, accrued retirement costs, and many more items of the similar trait (Cleverley & Cameron, 2007). The balance sheets of Omega Health Foundation indicate the decrease in the current ratio from fiscal year 2008 to fiscal year 2009 from 1.42 to 1.1. The liquidity of Omega Health Foundation decreased to 10% from 29% in the fiscal year 2009. The study of the balance...
According to William O. Cleverley, and Andrew E. Cameron (2007) Omega Health Foundation consist of Omega hospital, Able Memorial hospitals, and various related medical service providers. Omega Health Foundation has appointed Lenji Jacob as a consultant to evaluate the Omega Health Foundation’s finance. The paper will report principles of finance and the relationship with Omega Health Foundation’s financial position, compare and contrast net income and cash flows, compare and contrast market value and book value of assets, address the weaknesses and strengths, provide recommendations, and request additional information required to further evaluate Omega health foundation.
Principles of Finance and the relationship with Omega Health Foundation’s finance
According to William O. Cleverley, and Andrew E. Cameron (2007) principles of finance primarily includes four elements balance sheets, statement of revenues, and expenses, statement of cash flows, and statement of changes in fund balances or net assets.
Balance sheets
Balance sheets consist of current assets, and current liabilities. Current assets include cash and cash equivalents, accounts receivables, prepaid expenses, property plant and equipment, deferred financing costs, deferred third reimbursements, many more items of the similar trait (Cleverley & Cameron, 2007). Current liabilities include current portion of the “long-term debt,” notes payable, accounts payable, accrued expenses, accrued wages, salaries, and fees, payments to third party payers, accrued retirement costs, and many more items of the similar trait (Cleverley & Cameron, 2007). The balance sheets of Omega Health Foundation indicate the decrease in the current ratio from fiscal year 2008 to fiscal year 2009 from 1.42 to 1.1. The liquidity of Omega Health Foundation decreased to 10% from 29% in the fiscal year 2009. The study of the balance...