The differences between the audited and unaudited sections of the financial statements are very different. According to Patton-Fuller (2011), it seems the financial officer had over-estimated the payments, giving the impression that the organization would be doing a lot better than they actually did. When providing numbers for accounts receivable in 2009 the financial officer estimated the total at (totals shown in the thousands) $59,787, with a net allowance for bad debt for the same time-period at $10,757 while the audited version shows a very different picture. Accounts receivable for 2009 revealed a total $58,787, a one million dollar lower receivable difference. In addition, the net allowance for bad debt is shown at, $11,757, a one million dollar increase. The differences showing the audited amounts appear to show a vast difference. In addition, reveal a two million dollar deficit, from the unaudited version. This difference could in time cause the organization to suffer.
Are the financial ratios for the hospital improving? Explain. With this scenario I would have to say no they are not improving. The reason for this is a number of ratios must be analyzed together to get a true and reliable picture of the financial performance of the business. Relying on each ratio
References: Covey, S. (2011). Inspirational Quotes for Business: Empowerment and Delegation. Retrieved from http://humanresources.about.com/od/workrelationships/a/quotes_empower.htm Baker, J. a. (2011). Healthcare Finance: BAsic Tools for Nonfinancial Managers (3rd ed.). Jones and Bartlett. Patton-Fuller Operating Budget . (2008). Retrieved from www.phoenix.edu: https://ecampus.phoenix.edu/secure/aapd/cist/vop/Healthcare/PFCH/HosDepts/CFO/HDCFO004.htm Patton-Fuller Balance Sheet . (2008). Retrieved from www.phoenix.edu: https://ecampus.phoenix.edu/secure/aapd/cist/vop/Healthcare/PFCH/HosDepts/CFO/HDCFO004.htm