1
Figures title: 7
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· Read the explanations provided in the template for each section of your paper.
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REMINDERS
· The assignment is due in week 8. Late submissions negatively impact your grade.
· Use the same public corporation you used for assignments in Week 3 and 6.
· Do not copy content from previous assignments in this class or others.
· Include at least 6 full and complete academically written pages that address the requirements. The title page, this instruction page, and the source page do not count.
· Use at least 3 quality sources, one of which MUST be the course textbook.
· SafeAssign – an automated plagiarism checker. It is advised that you do your own writing and use external resources to support what you have written in your own words.
Week 8 Business-Level and Corporate-Level Strategies Assignment
Write your introduction to this 6 page paper here. Include one paragraph (not more than 6 lines of text) that explains what your paper will discuss. Much of your introduction may be taken from the assignment instructions (in your own words). Read all assignment resources to understand what should be included in your paper. Be sure to review the assignment instructions in Blackboard, the grading rubric, and relevant course announcements to understand the requirements. Do not exceed 6 lines of text in this introduction. There should be no direct quotes in this section. After reading these instructions, replace this blue text with your introduction and change the font color to black.
Business-Level Strategies
Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm. You will also need to determine whether or not you judge this to be a good choice (Note: in this step you need to choose and write about only one business-level strategy from the text book (not Google). Hint: See Figure 4.1 in the textbook. Include a thorough justification for your choice that is backed by facts and sound judgement. For background, be sure to research and explain the industry in which your selected corporation operates. You could also briefly (1 – 2 sentences) define the business-level strategy (cite your sources) you are writing about using the textbook/Learn, as an introduction to your analysis. Read Chapter 4 in the course textbook. Review the Week 4 Learn Reading for supporting content. Your response here should demonstrate that you understand the key concepts regarding the selected business-level strategy and can apply them to a real-world corporation. Keep in mind that this is a 6 page paper and as such your analysis should thoroughly address the concepts discussed in the course. Avoid unsubstantiated statements, extended introductory commentary, direct quotes, and unrelated content. Strive for about 1 ½ to 2 pages of well-constructed, in-depth analysis in this section.
In this section, you could research and identify the core competencies your chosen firm uses to implement its business-level strategies and discuss their effectiveness. You could also demonstrate from your research how the firm uses its core competencies to create and sell its products in the marketplace. Consider the actions & choices your firm has made to compete in individual product markets. Review Chapters 4-9 for specifics on the business-level strategies. Your response should clearly identify the one business-level strategy from the textbook that you think is most important to the long-term success of the corporation. Your response must also include a clearly stated and justified judgement on whether that strategy is a good choice. Include enough content and depth to demonstrate a thorough analysis of your selected corporation’s business-level strategy. Remember that this is a 6 page paper and as such, you will need to dig deep. After reading these instructions, replace this blue text with your analysis and change the font color to black.
Corporate-Level Strategies
Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm. You will also need to determine whether or not you judge this to be a good choice. (Note: in this step you need to choose and write about only one corporate-level strategy from the text book (not Google). Hint: See chapter 6 in the textbook. Include a thorough justification for your choice that is backed by facts and sound judgement. You could also briefly (1 – 2 sentences) define the corporate-level strategy (cite your sources) you are writing about using the textbook/Learn, as an introduction to your analysis. Read Chapter 6 in the course textbook. Review the Week 6 Learn Reading for supporting content. Your response here should demonstrate that you understand the key concepts regarding the selected corporate-level strategy and can apply them to a real-world corporation. Keep in mind that this is a 6-page paper and as such your analysis should thoroughly address the concepts discussed in the course. Avoid unsubstantiated statements, extended introductory commentary, direct quotes, and unrelated content. Strive for about 1 ½ to 2 pages of well-constructed, in-depth analysis in this section.
Your response should clearly identify the one corporate-level strategy from the textbook that you think is most important to the long-term success of the corporation. Your response must also include a clearly stated and justified judgement on whether that strategy is a good choice. Include enough content and depth to demonstrate a thorough analysis of your selected corporation’s corporate-level strategy. Remember that this is a 6 page paper and as such, you will need to dig deep. After reading these instructions, replace this blue text with your analysis and change the font color to black.
Competitive Environment
Analyze the competitive environment to determine the corporation's most significant competitor (this will require research outside of the course material). Compare their strategies at each level and evaluate which company you think is most likely to be successful in the long term. Justify your choice. Hint: read chapters 1 through 10 in the course textbook as they provide a solid background for this section. Review the Week 1 through 8 Learn readings for supporting content. Remember that this is a 6 page paper and requires a thorough competitive analysis. Strive for about a 1 ½ to 2 pages of well-constructed, in-depth analysis in this section. Cite your sources and avoid the use of direct quotes. After reading these instructions, replace this blue text with your analysis and change the font color to black.
Market Cycles
Determine whether your choice from Question 3 (Competitive Environment section above) would differ in slow-cycle and fast-cycle markets. It would be a good idea to briefly explain what the slow-cycle and fast-cycle markets are from the textbook (cite your sources) as a short introduction to your determination. Hint: read Chapter 5 in the course textbook. Remember that this is a 6-page paper and therefore each section requires a thorough response that demonstrates your understanding of key concepts covered in the course and your ability to apply them to a real-world corporation. Cite your sources and avoid the use of direct quotes. After reading these instructions, replace this blue text with your response and change the font color to black.
Sources
1. Hitt, Ireland, & Hoskisson. 2020. Strategic management: Concepts and cases: Competitiveness and globalization (13th ed.). Mason, OH: South-Western Cengage Learning
2. Author. Publication Date. Title. Page # (written as p. #). How to Find (e.g. web address)
3. Author. Publication Date. Title. Page # (written as p. #). How to Find (e.g. web address)
08-16-2021 RATIOS AND ANALYSIS FEEDBACK!!!!!!
8/15/21
Thank you for resubmitting your Ratios and Analysis project, Walter.
Please see my detailed feedback in the rubric. You still have the same issue with your calculation for Average Collection.
You are doing very well on this project!
I look forward to working with you as you reach mastery on this project.
Best wishes,
Amanda
1) Financial Analysis Workbook: Accurately calculates the ratios using the formulas provided. NOT MASTERED!!!!!
8/15/21 Average Collection - 2017: The result is still not correct. You have the ratio set up correctly but the result is not correct. Please recalculate your result.
August 10, 2021, RATIO AND ANALYSIS FEEDBACK
Walter,
Thank you for this submission and you are very close to mastery as noted in the rubric comments. I will be watching for the revision so we can get this one mastered,
Jim
1) Financial Analysis Workbook: Accurately calculates the ratios using the formulas provided. NOT MASTERED!!!!!
Only 1 calculation needs review. Average collection period 2017 ratio needs review. The formula is correct, but the math is not correct for 2017.
19 JULY RATIOS AND ANALYSIS FEEDBACK
Walter,
Nice progress on the project! Please review my comments on the rubric dated 7.18.21. Please post in the public discussion area if you have questions your fellow classmates might answer. Please post in private discussions if you have specific questions about the project that I can answer directly.
Keep up the good work!
Tracy A.
1) Financial Analysis Workbook: Accurately calculates the ratios using the formulas provided. NOT MASTERED!!!!!
7.18.21 I do not see any revisions regarding the feedback from 6/18.
6/18/21 You need to include the calculations you used to reach the result. Please express your results using the correct terminology. All ratios results should be labeled "times" except for Average Collection which is "Days" and the Debt to Total Assets and profitability results which should be converted into percentages.
2) Brief to the Board of Directors: Examines the business’s financial performance by comparing the business’s finances against industry averages and past performance. NOT MASTERED!!!!!
7.18.21 Please update the Financial Analysis Workbook per the feedback above. From there you will want to revise the analysis in your brief using the correct ratios.
3) Brief to the Board of Directors: Discusses the strengths and weaknesses of the business’s financial performance. NOT MASTERED!!!!!
7.18.21 Please update the Financial Analysis Workbook per the feedback above. From there you will want to revise the analysis in your brief using the correct ratios.
4) Brief to the Board of Directors: Recommends appropriate actions. NOT MASTERED!!!!!
7.18.21 Please update the Financial Analysis Workbook per the feedback above. From there you will want to revise the analysis in your brief using the correct ratios.
5) Brief to the Board of Directors: Supports recommendation using the financial analysis. NOT MASTERED!!!!!
7.18.21 Please update the Financial Analysis Workbook per the feedback above. From there you will want to revise the analysis in your brief using the correct ratios.
6) General: Clearly conveys meaning with correct grammar, sentence structure, and spelling; shows understanding of audience and purpose. NOT MASTERED!!!!!
7.18.21 Your writing looks good so far. Since you have revisions to make I will review your writing next time.
Hi All, we are providing you with an updated Financial Analysis Workbook. This does not change your requirements. What it does do it help you understand the requirements and complete the brief.
https://learn.snhu.edu/d2l/lms/news/main.d2l?ou=754412
✰ Digging into the Directions
· Read through the directions a few times. The directions set the stage for your project.
✰ Develop the Project Deliverables
· There are 2 deliverables - (1) the Financial Analysis Workbook and (2) the Brief to the Board of Directors.
· Financial Analysis Workbook
· Remember to ‘express’ the appropriate measure for each ratio. This means you will indicate if the ratio is a “%”, “days”, or “times”.
· Round calculated answers to two decimals where applicable.
· Brief to the Board of Directors
· Your brief should provide a summary of the issue, explain anything you identify to be of importance or change, financial implications, and summarize facts regarding your analysis and supporting information regarding your decision.
· Interpret the ratios and vertical and horizontal analyses to evaluate the business performance of Lueders Medical Clinic.
· In your brief, make sure to refer to your financial analysis workbook. It is important that you explain what each ratio tells you about the clinic’s performance.
· Make sure to recommend whether it is a good investment for the hospital to purchase the clinic. Back up / explain this decision with the results from the financial analysis workbook.
· Specifically, address the following in your brief:
·
·
· Examine the clinic’s financial performance.
· How does the clinic’s financial performance compare against industry averages and past performance?
· What are the strengths and weaknesses of the clinic’s financial performance?
· Recommend appropriate actions using your financial analysis as support.
· Is purchasing the clinic a good or bad investment?
· What are some potential areas of improvement?
✰ Examine the Learning Resources
· Review in the project resources for examples of how to ‘express’ these ratios.
· Check out the FlatWorld text. Did you know you can search the text for help?
· The formula is provided in the Financial Analysis Workbook. If you see, as an example, current assets / current liabilities go to the appropriate financial statement and find current assets, find current liabilities, and perform the calculation.
· Vertical analysis requires a base amount for the balance sheet and for the income statement. The project resources > Vertical Analysis Unit > Unit Resources: Vertical Analysis > Reading: A Manager's Guide to Financial Analysis, Vertical Analysis. The base amounts are identified and explained at the top of page 34.
· Balance sheet accounts are divided by the balance sheet base.
· Income statement accounts are divided by the income statement base.
· The video located in Unit Resources: Financial Statements > Video: Ratio Analysis: Business Finance Essentials is helpful in explaining calculations and what they mean.
· Use the CfA Citation Guide and CFA Citation Maker. This is located under Project & Resources > Citation Help
· Click “Support” > ”Academic Support Center” for help with writing and for tutoring and peer support:
· Phone: 866-721-1662
✰ Submit the Project!
· Review the rubric carefully. Are there any criteria about which you have questions? If so, feel free to send a note through the Public Channel.
· Review the Project Checklist. Have you covered everything? Any questions?
· Time to submit. Make sure to include a complete deliverable each time you submit your project.
✰ Reaching out
· Reach out through the Public Channel at any time.
· The best way to contact your Reviewer once you have submitted your project and received the initial feedback is through the Private Channel under Discussions. Here you can reach out with any questions about the project or feedback and you will hear back from a Reviewer shortly.
· Reviewers are here to support your success! Feel free to reach out—we are here for YOU!
Walter,
Thank you for your submission. A substantial portion of the Brief to the Board of Directors deliverable is directly quoted from other sources. Evidence of your original work to bring context to the quoted material is not sufficiently developed. I am returning your project with all aspects marked as "not yet" and no further feedback as there is not enough of your own work to assess mastery. Please refer to the library resources and this article as you continue to work on this project. I would also encourage you to review the TurnItIn report for your submission.
I look forward to your revised submission.
RATIOS AND ANALYSIS FEEDBACK 22 JUNE 2021
1) Financial Analysis Workbook: Accurately selects the base amounts from the financial statements to perform vertical analysis. Not mastered!!!!!
Criterion Feedback
6/18/21 The base amounts for the Income Statement and Balance Sheet are blank. Please click on the tab along the bottom of the spreadsheet for the Horizontal & Vertical Analyses to complete that portion of the deliverable.
2) Financial Analysis Workbook: Accurately calculates the ratios using the formulas provided. Not mastered!!!!!
6/18/21 Your years are switched for the years. Please correct that. Please express your results using the correct terminology. All ratios results should be labeled "times" except for Average Collection which is "Days" and the Debt to Total Assets and profitability results which should be converted into percentages.
3) Financial Analysis Workbook: Validates the ratios by showing the calculations and using the appropriate units. Not mastered!!!!!
6/18/21 You need to include the calculations you used to reach the result. Please express your results using the correct terminology. All ratios results should be labeled "times" except for Average Collection which is "Days" and the Debt to Total Assets and profitability results which should be converted into percentages.
4) Brief to the Board of Directors: Examines the business’s financial performance by comparing the business’s finances against industry averages and past performance. Not mastered!!!!!
6/18/21 Brief not submitted.
5) Brief to the Board of Directors: Discusses the strengths and weaknesses of the business’s financial performance. Not mastered!!!!!
6/18/21 Brief not submitted.
6) Brief to the Board of Directors: Recommends appropriate actions. Not mastered!!!!!
6/18/21 Brief not submitted.
7) Brief to the Board of Directors: Supports recommendation using the financial analysis. Not mastered!!!!!
6/18/21 Brief not submitted.
8) General: Clearly conveys meaning with correct grammar, sentence structure, and spelling; shows understanding of audience and purpose. Not mastered!!!!!
6/18/21 Brief not submitted.
RATIOS AND ANALYSIS FEEDBACK
Thank you for submitting your Ratios and Analysis project, Walter.
Please see my detailed feedback in the rubric. You did not include the provided spreadsheet that is located in the project resources. Once completed, please submit that for review and update your brief to include that information.
I look forward to working with you as you reach mastery on this project.
Best wishes,
Amanda
THIS PROJECT IS NOT YET MASTERED!!!!
The Excel spreadsheet you need to submit is provided in the project resources. Please complete that spreadsheet and submit that for review.
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851704/View
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851702/View
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851703/View
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851701/View
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851706/View
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851705/View
Financial Analysis
Workbook.xlsx
Horizontal & Vertical Analyses
Lueders Medical Clinic | |||||||
Horizontal Analysis of Selected Accounts | |||||||
Accounts | 2018 $ | 2017 $ | Change | Percent | Notes | ||
Accounts receivable | 66,135.00 | 75,675.00 | (9,540.00) | -0.1261 | |||
Supplies inventory | 19,340.00 | 30,100.00 | (10,760.00) | -0.3575 | |||
Property and equipment | 60,321.00 | 37,672.00 | 22,649.00 | 0.6012 | |||
Bad debts | 11,500.00 | 18,440.00 | (6,940.00) | -0.3764 | |||
Total contractual allowances | 505,200.00 | 465,000.00 | 40,200.00 | 0.0865 | |||
Net patient revenue | 338,800.00 | 310,000.00 | 28,800.00 | 0.0929 | |||
Salaries and wages | 165,320.00 | 139,279.00 | 26,041.00 | 0.1870 | |||
Long-term liabilities | 15,000.00 | 12,355.00 | 2,645.00 | 0.2141 | |||
Vertical Analysis: Fill in the correct information for each of the base amounts below. | |||||||
Lueders Medical Clinic | |||||||
Vertical Analysis of Selected Accounts | |||||||
Accounts | Year 2018 | Year 2017 | Industry | Notes | |||
Amount $ | Percent | Amount $ | Percent | ||||
Accounts receivable | 66,135.00 | ERROR:#DIV/0! | 75,675.00 | ERROR:#DIV/0! | 45% | ||
Supplies inventory | 19,340.00 | ERROR:#DIV/0! | 30,100.00 | ERROR:#DIV/0! | 10% | ||
Net patient revenue | 338,800.00 | ERROR:#DIV/0! | 310,000.00 | ERROR:#DIV/0! | 100% | ||
Accounts payable | 65,450.00 | ERROR:#DIV/0! | 41,254.00 | ERROR:#DIV/0! | 26% | ||
Salaries and wages | 165,320.00 | ERROR:#DIV/0! | 139,279.00 | ERROR:#DIV/0! | 11% | ||
Depreciation and amortization | 12,500.00 | ERROR:#DIV/0! | 17,650.00 | ERROR:#DIV/0! | 80% | ||
Long-term liabilities | 15,000.00 | ERROR:#DIV/0! | 12,355.00 | ERROR:#DIV/0! | 6% | ||
Net income | 1,424.00 | ERROR:#DIV/0! | 513.00 | ERROR:#DIV/0! | 10% | ||
Base Amount for Balance Sheet: | 2018 | 2017 | |||||
Base Amount for Income Statement: | 2018 | 2017 | |||||
Ratio Analysis
Ratio Analysis | |||||||
Please show your work in the "Calculation" cells. | |||||||
Place your final ratios, properly expressed with units, in the bold outlined cells. | |||||||
Ratios | Calculation | 2018 | Calculation | 2017 | Industry Average | Notes | |
Liquidity Ratios | Current Ratio | 1.29 | |||||
Current Assets / Current Liabilities | |||||||
Quick Ratio (Acid Test) | 0.68 | ||||||
(Current Assets - Supplies Inventory) / Current Liabilities | |||||||
Debt Ratios | Debt to Total Assets | 0.4 | |||||
Total Debt / Total Assets | |||||||
Times Interest Earned | 2.5 | ||||||
(Net Income + Interest Charges) / Interest Charges | |||||||
Asset Management Ratios | Inventory Turnover | 25 | |||||
Net Patient Service Revenue / Supplies Inventory | |||||||
Average Collection Period | 55.4 | ||||||
Accounts Receivable / Net Patient Service Revenues Per Day | |||||||
Fixed Assets Turnover | 5.2 | ||||||
Net Patient Service Revenue / Fixed Assets | |||||||
Total Assets Turnover | 3 | ||||||
Net Patient Service Revenue / Total Assets | |||||||
Profitability Ratios | Profit Margin on Revenue | 0.59 | |||||
Net Income / Net Patient Service Revenue | |||||||
Return on Total Assets | 4.8 | ||||||
Net income / Total assets | |||||||
Return on Equity | 0.0975 | ||||||
Net income / Equity | |||||||
Horizontal & Vertical Analyses
Lueders Medical Clinic | |||||||
Horizontal Analysis of Selected Accounts | |||||||
Accounts | 2018 $ | 2017 $ | Change | Percent | Notes | ||
Accounts receivable | 66,135.00 | 75,675.00 | (9,540.00) | -0.1261 | |||
Supplies inventory | 19,340.00 | 30,100.00 | (10,760.00) | -0.3575 | |||
Property and equipment | 60,321.00 | 37,672.00 | 22,649.00 | 0.6012 | |||
Bad debts | 11,500.00 | 18,440.00 | (6,940.00) | -0.3764 | |||
Total contractual allowances | 505,200.00 | 465,000.00 | 40,200.00 | 0.0865 | |||
Net patient revenue | 338,800.00 | 310,000.00 | 28,800.00 | 0.0929 | |||
Salaries and wages | 165,320.00 | 139,279.00 | 26,041.00 | 0.1870 | |||
Long-term liabilities | 15,000.00 | 12,355.00 | 2,645.00 | 0.2141 | |||
Vertical Analysis: Fill in the correct information for each of the base amounts below. | |||||||
Lueders Medical Clinic | |||||||
Vertical Analysis of Selected Accounts | |||||||
Accounts | Year 2018 | Year 2017 | Industry | Notes | |||
Amount $ | Percent | Amount $ | Percent | ||||
Accounts receivable | 66,135.00 | ERROR:#DIV/0! | 75,675.00 | ERROR:#DIV/0! | 45% | ||
Supplies inventory | 19,340.00 | ERROR:#DIV/0! | 30,100.00 | ERROR:#DIV/0! | 10% | ||
Net patient revenue | 338,800.00 | ERROR:#DIV/0! | 310,000.00 | ERROR:#DIV/0! | 100% | ||
Accounts payable | 65,450.00 | ERROR:#DIV/0! | 41,254.00 | ERROR:#DIV/0! | 26% | ||
Salaries and wages | 165,320.00 | ERROR:#DIV/0! | 139,279.00 | ERROR:#DIV/0! | 11% | ||
Depreciation and amortization | 12,500.00 | ERROR:#DIV/0! | 17,650.00 | ERROR:#DIV/0! | 80% | ||
Long-term liabilities | 15,000.00 | ERROR:#DIV/0! | 12,355.00 | ERROR:#DIV/0! | 6% | ||
Net income | 1,424.00 | ERROR:#DIV/0! | 513.00 | ERROR:#DIV/0! | 10% | ||
Base Amount for Balance Sheet: | 2018 | 2017 | |||||
Base Amount for Income Statement: | 2018 | 2017 | |||||
Ratio Analysis
Ratio Analysis | |||||||
Please show your work in the "Calculation" cells. | |||||||
Place your final ratios, properly expressed with units, in the bold outlined cells. | |||||||
Ratios | Calculation | 2018 | Calculation | 2017 | Industry Average | Notes | |
Liquidity Ratios | Current Ratio | 1.29 | |||||
Current Assets / Current Liabilities | |||||||
Quick Ratio (Acid Test) | 0.68 | ||||||
(Current Assets - Supplies Inventory) / Current Liabilities | |||||||
Debt Ratios | Debt to Total Assets | 0.4 | |||||
Total Debt / Total Assets | |||||||
Times Interest Earned | 2.5 | ||||||
(Net Income + Interest Charges) / Interest Charges | |||||||
Asset Management Ratios | Inventory Turnover | 25 | |||||
Net Patient Service Revenue / Supplies Inventory | |||||||
Average Collection Period | 55.4 | ||||||
Accounts Receivable / Net Patient Service Revenues Per Day | |||||||
Fixed Assets Turnover | 5.2 | ||||||
Net Patient Service Revenue / Fixed Assets | |||||||
Total Assets Turnover | 3 | ||||||
Net Patient Service Revenue / Total Assets | |||||||
Profitability Ratios | Profit Margin on Revenue | 0.59 | |||||
Net Income / Net Patient Service Revenue | |||||||
Return on Total Assets | 4.8 | ||||||
Net income / Total assets | |||||||
Return on Equity | 0.0975 | ||||||
Net income / Equity | |||||||
Lueder’s Medical Clinic 2017–2018 Financial Statements
Lueder’s Medical Clinic – Income Statement Year Ended December 31
Operating Revenue 2017 2018
Gross patient service revenue $775,000.00 $844,000.00
Less: Contractual allowances 465,000.00 505,200.00
Net patient service revenue 310,000.00 338,800.00
Other operating revenue 18,000.00 28,000.00
Total operating revenue 328,000.00 366,800.00
Operating Expenses 2017 2018
Salaries and wages 139,279.00 165,320.00
Employee benefits 13,041.00 14,062.00
Supplies expense 17,376.00 17,058.00
Purchased services 29,200.00 26,756.00
Other operating expenses 105,076.00 117,806.00
Provision for bad debts 18,440.00 11,500.00
Depreciation and amortization 17,650.00 12,500.00
Interest expense 2,750.00 1,819.00
Total Expenses $342,812.00 $366,821.00
Revenue over expenses from operations (14,812.00) (21.00)
Nonoperating gains: Investment income 15,325.00 1,445.00
Net income (loss) $513.00 $1,424.00
Lueders Medical Clinic – Balance Sheet Year Ended December 31
Assets
Current Assets 2017 2018
Cash and investments $12,000.00 $13,650.00
Patient accounts receivable, net allowance 75,675.00 66,135.00
Supplies inventory 30,100.00 19,340.00
Total current assets 117,775.00 99,125.00
Property and equip, net of accumulated depreciation 37,672.00 60,321.00
Total assets $155,447.00 $159,446.00
Liability and Equity
Current Liabilities 2017 2018
Accounts payable $41,254.00 $65,450.00
Accrued salaries and expenses 15,200.00 7,600.00
Due to third-party payors 21,345.00 15,350.00
Total current liabilities 77,799.00 88,400.00
Long-term liabilities 12,355.00 15,000.00
Pension liabilities 11,124.00 5,500.00
Total Liabilities 101,278.00 108,900.00
Equity 54,169.00 50,546.00
Total liabilities and equity $155,447.00 $159,446.00
- Lueder’s Medical Clinic 2017–2018 Financial Statements
- Lueder’s Medical Clinic – Income Statement Year Ended December 31
- Lueders Medical Clinic – Balance Sheet Year Ended December 31
- Assets
- Liability and Equity
RATIOS and ANALYSIS ASSIGNMENT INSTRUCTIONS
Project Overview
In this project, you will complete a financial analysis workbook and write a brief to the board of directors. In the financial analysis workbook, you will assess the performance of a business using ratio, vertical, and horizontal analyses. In the brief to the board of directors, you will summarize your calculations and make a recommendation to the board on whether purchasing the business would be a good investment. The ability to evaluate trend situations and communicate those findings to others are important professional skills.
Competency
In this project, you will master the following competency:
· Apply appropriate ratios and vertical and horizontal analysis to recommend business decisions
Scenario
You work for Healing Thyme Hospital. The hospital’s board of directors is looking to purchase Lueders Medical Clinic, a local medical practice, and has asked you to provide them with insights on how the clinic is performing financially. You will need to analyze the clinic’s performance and recommend whether purchasing the clinic is a good investment.
Directions
The board of directors for the hospital has asked you to complete the financial analysis workbook and then write a brief that interprets your calculations and evaluates the clinic's business performance. You will send your financial analysis to the board of directors to support your recommendation on whether the hospital should purchase the clinic.
· Financial Analysis Workbook First, read the Lueders Medical Clinic 2017–2018 Financial Statements, which is linked in the Supporting Materials section. Then, perform the financial analysis of the clinic using the Financial Analysis Workbook Excel spreadsheet , which is also linked in the What to Submit section. This way, you can apply the ratios and vertical and horizontal analyses to the clinic’s annual financials.
The board will review your report to verify that you:
· Use the base amounts from the financial statements to perform the vertical analysis
· Calculate the ratios accurately using the formulas provided in the workbook
· Validate the accuracy of the ratios by showing the calculations and using the appropriate units
As you complete each section, it may be helpful to take notes about what you learn. Then, you can use your notes to evaluate the business’s financial status and write your brief to the board of directors.
· Brief to the Board of Directors Once you have completed your financial analysis, interpret the ratios and vertical and horizontal analyses to evaluate the business performance of Lueders Medical Clinic. In your brief, make sure to refer to your financial analysis workbook. It is important that you explain what each ratio tells you about the clinic’s performance. Then, recommend whether it is a good investment for the hospital to purchase the clinic. Use your financial analysis workbook to explain your decision.
Specifically, address the following in your brief:
· Examine the clinic’s financial performance.
· How does the clinic’s financial performance compare against industry averages and past performance?
· What are the strengths and weaknesses of the clinic’s financial performance?
· Recommend appropriate actions using your financial analysis as support.
· Is purchasing the clinic is a good or bad investment?
· What are some potential areas of improvement?
What to Submit
Every project has a deliverable or deliverables, which are the files that must be submitted before your project can be assessed. For this project, you must submit the following:
1. Financial Analysis Workbook Download and complete the Financial Analysis Workbook Excel spreadsheet with two worksheets. Use the first worksheet to perform the horizontal and vertical analyses. Use the second worksheet to perform the ratio analysis. Refer to the Lueders Clinic 2017–2018 Financial Statements to calculate each ratio. Your workbook must include two completed worksheets (Horizontal and Vertical Analysis and Ratio Analysis). It should be presentable and annotated for your audience.
2. Brief to the Board of Directors Your brief to the hospital’s board of directors should be 250–500 words or about 1–2 pages in length. Cite your sources appropriately.
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851695/View
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851702/View
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851706/View
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851703/View
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851704/View
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851701/View
https://learn.snhu.edu/d2l/le/content/754412/viewContent/12851705/View

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