Use the balance sheet and statement of income you downloaded for Ascension Healt
ID: 2731720 • Letter: U
Question
Use the balance sheet and statement of income you downloaded for Ascension Health during Week 3. In a Microsoft Excel spreadsheet, prepare a vertical analysis of the company for the years 2013 and 2014 and a horizontal analysis from 2013 (base year) to 2014 (subsequent year). http://www.ascensionhealth.org/index.php?option=com_content&view=article
&id=45&Itemid=160.
Discuss your findings. Here are a few, but not all, the questions you should consider. Is Ascension Health growing? What line items reflected the largest-percentage increases and/or decreases? What is the financial impact these changes have on the company's financial viability currently and in the future?
Explanation / Answer
As per link provided by youhttp://www.ascensionhealth.org/index.php?option=com_content&view=article
&id=45&Itemid=160,
We could cjeck the Audited Financial Statement
and from the Ascension Consolidated Balance Sheets and Ascension Consolidated Statements of Operations and Changes in Net Assets we could prepare the following verticle and Horizontal analysis for the year 2014 and 2013
Ascension Health Vertical Analysis Horizontal Analysis Balance Sheet Assets 2014 2013 2013 to 2014 Current assets: Cash and cash equivalents 618,418 1.98% 753,555 2.51% -17.93% Short-term investments 109,081 0.35% 113,825 0.38% -4.17% Accounts receivable, less allowance for doubtful accounts ($1,260,407 and $1,297,609 at June 30, 2014 and 2013, respectively) 2,419,616 7.73% 2,292,521 7.63% 5.54% Inventories 332,739 1.06% 297,233 0.99% 11.95% Due from brokers (see Notes 4 and 5) 343,757 1.10% 178,380 0.59% 92.71% Estimated third-party payor settlements 236,559 0.76% 119,379 0.40% 98.16% Other (see Notes 4 and 5) 562,367 1.80% 1,026,397 3.42% -45.21% Total current assets 4,622,537 14.77% 4,781,290 15.91% -3.32% Long-term investments (see Notes 4 and 5) 15,327,255 48.97% 14,156,447 47.11% 8.27% Property and equipment, net 8,410,629 26.87% 8,274,854 27.54% 1.64% Other assets: 0.00% 0.00% Investment in unconsolidated entities 649,888 2.08% 628,772 2.09% 3.36% Capitalized software costs, net 778,705 2.49% 718,122 2.39% 8.44% Other 1,509,849 4.82% 1,487,886 4.95% 1.48% Total other assets 2,938,442 9.39% 2,834,780 9.43% 3.66% Total assets 31,298,863 100.00% 30,047,371 100.00% 4.17% Liabilities and net assets Current liabilities: Current portion of long-term debt 91,532 0.29% 89,869 0.30% 1.85% Long-term debt subject to short-term remarketing arrangements* 1,345,530 4.30% 1,187,125 3.95% 13.34% Accounts payable and accrued liabilities 2,293,663 7.33% 2,278,242 7.58% 0.68% Estimated third-party payor settlements 450,054 1.44% 455,432 1.52% -1.18% Due to brokers (see Notes 4 and 5) 332,169 1.06% 493,420 1.64% -32.68% Current portion of self-insurance liabilities 226,856 0.72% 210,115 0.70% 7.97% Other (see Notes 4 and 5) 274,645 0.88% 639,566 2.13% -57.06% Total current liabilities 5,014,449 16.02% 5,353,769 17.82% -6.34% Noncurrent liabilities: Long-term debt (senior and subordinated) 4,994,913 15.96% 5,278,304 17.57% -5.37% Self-insurance liabilities 541,859 1.73% 553,706 1.84% -2.14% Pension and other postretirement liabilities 428,679 1.37% 554,368 1.84% -22.67% Other (see Notes 4 and 5) 1,343,826 4.29% 1,178,597 3.92% 14.02% Total noncurrent liabilities 7,309,277 23.35% 7,564,975 25.18% -3.38% Total liabilities 12,323,726 39.37% 12,918,744 42.99% -4.61% Net assets: Unrestricted Controlling interest 16,736,190 53.47% 14,986,302 49.88% 11.68% Noncontrolling interests 1,656,106 5.29% 1,592,356 5.30% 4.00% Unrestricted net assets 18,392,296 58.76% 16,578,658 55.18% 10.94% Temporarily restricted 391,226 1.25% 375,054 1.25% 4.31% Permanently restricted 191,615 0.61% 174,915 0.58% 9.55% Total net assets 18,975,137 60.63% 17,128,627 57.01% 10.78% Total liabilities and net assets 31,298,863 100.00% 30,047,371 100.00% 4.17% Ascension Health Income Statement 2014 2013 Operating revenue: Net patient service revenue 19,193,307 95.25% 16,326,684 98.73% 17.56% Less provision for doubtful accounts 1,273,354 6.32% 1,124,409 6.80% 13.25% Net patient service revenue, less provision for doubtful accounts 17,919,953 88.93% 15,202,275 91.93% 17.88% 0.00% 0.00% Other revenue 2,229,767 11.07% 1,334,623 8.07% 67.07% Total operating revenue 20,149,720 100.00% 16,536,898 100.00% 21.85% 0.00% 0.00% Operating expenses: 0.00% 0.00% Salaries and Wages 8,202,294 40.71% 6,974,951 42.18% 17.60% Employee Benefits 1,747,739 8.67% 1,528,119 9.24% 14.37% Purchased Services 1,210,276 6.01% 955,440 5.78% 26.67% Professional Fees 1,279,459 6.35% 1,093,446 6.61% 17.01% Supplies Insurance 2,822,102 14.01% 2,334,427 14.12% 20.89% 128,535 0.64% 109,178 0.66% 17.73% Interest 194,616 0.97% 150,877 0.91% 28.99% Depreciation and amortization Other 899,389 4.46% 730,757 4.42% 23.08% Other 2,901,859 14.40% 2,140,182 12.94% 35.59% Total operating expenses before impairment,restructuring and nonrecurring losses, net 19,386,269 96.21% 16,017,377 96.86% 21.03% Income from operations before self-insurance trust fund investment return and impairment, restructuring, and nonrecurring losses, net 763,451 3.79% 519,521 3.14% 46.95% Self-insurance trust fund investment return Impairment, restructuring and nonrecurring losses, 66,174 0.33% 34,985 0.21% 89.15% restructuring and nonrecurring losses, net Income from operations -223,834 -1.11% -103,344 -0.62% 116.59% net Income from operations 605,791 3.01% 451,162 2.73% 34.27% Nonoperating gains (losses): 0.00% 0.00% Investment return 1,515,819 7.52% 736,300 4.45% 105.87% Loss on extinguishment of debt s -1,605 -0.01% -4,079 -0.02% -60.65% Income from unconsolidated entities -6,020 -0.03% 53,746 0.33% ####### Total nonoperating gains, net 5,539 0.03% 8,544 0.05% -35.17% Contributions from business combinations, net - 2,021,963 12.23% Other -63,119 -0.31% -69,524 -0.42% -9.21% Total nonoperating gains, net 1,450,614 7.20% 2,746,950 16.61% -47.19% Excess of revenues and gains over expenses and losses Less noncontrolling interests 2,056,405 10.21% 3,198,112 19.34% -35.70% Less non-controlling interest 245,893 1.22% 131,184 0.79% 87.44% Excess of revenues and gains over expenses and losses attributable to controlling interest 1,810,512 8.99% 3,066,928 18.55% -40.97%
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