Session 5 Exercise
Creating a BudgetDon't use plagiarized sources. Get Your Custom Essay onYou have been hired as the financial manager of a health care organization. One month after being… 1 answer below »
See Assignment Exercise 16-1: Budgeting (p. 560)
Select an organization either from the Case Studies in Chapters 32-33 or from one of the Mini-Case Studies in Chapters 34-35. Using the organization selected, create a budget for the next fiscal year. Set out the details of all assumptions you needed in order to build this budget.
Click on the Session 5 Exerciselink to submit your budget and list of assumptions by the posted due date. Review the rubric available in Due Dates and Grades for specific grading criteria.
Session 5 Final Paper
You have been hired as the financial manager of a health care organization. One month after being hired, the president of the organization has met with you and directed you to do a thorough review of the financial situation of the organization and to report to him. The president was kind enough to give you some direction as to the format of the report he expects from you:
- As a manager in this health care organization, what is your management view? What is the general responsibility associated with that view? What do you consider are the elements of financial management? In this area, specifically address stewardship from a biblical worldview and incorporate what we have learned from this session. How would you define stewardship in this situation?
- Compile a Record of Financial Operations involving a general review of the organization’s financial statements. What financial statements would you need and what do these financial statements show and represent? (See Chapters 4-6 of your textbook.)
- Define the tools you will use to analyze and understand the financial operations of the organization. Explain these tools in detail. Discuss their usefulness. (See Chapters 8-9 of your textbook.)
- Name the tools you will use to review and manage comparative data going forward. Explain these tools and discuss their usefulness. (See Chapters 12-14 of your textbook.)
- The president also told you to consider the possibility of the organization having to borrow money from a bank in the near future to use in the operations of the organization. What management decisions would you consider and make regarding the business loan from the bank? (See Chapters 21-22 of your textbook.) Include a relevant financial statement displaying hypothetical numbers.
- Includes a paragraph explaining the capital structures, debt-equity relationship, provide example computations of the percentage of debt as well as the percentage of equity represented for the president to review.
- Comment on interest rates that are fair and equitable. Use the current prime rate (found in the Wall Street Journal) as a benchmark for this.
Note: Locating Financial Statements
To find financial statements, try searching on the web to find the annual reports of publicly-held health care entities, including hospital and nursing home chains, pharmaceutical companies, device manufacturers, retail pharmacies, and so on. You could also go to the Wall Street Journal stock exchange listings to find publicly-held health care corporations. Once at the organization’s home page, the most recent annual report should be prominently listed on the menu. The total liabilities and equity should be listed on the annual report’s balance sheet, and you should be able to compute what percentage of that total is applicable to liabilities and to equity.
Write a 6-8 page report (not counting cover page, references, or financial statement appendix) for the president and board using APA standards. Please be concise and to the point. You must draw on your personal experiences and use the course materials as well as outside academic resources if useful. Please be sure to address all FIVE areas suggested by the president.