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.

· Make sure to take note of the prompts that are provided in the directions. These will be important to address in 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:

· Email:  [email protected]

· 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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