Homework: Conducting a Comparative Financial Analysis
Competency
Analyze financial statements to assess performance and to ensure organizational improvement and long-term viability.
Scenario
In an ongoing effort to explore the feasibility of expanding services into rural areas of the state, leadership at Memorial Hospital has determined that conducting a review of its financial condition will be essential to ensuring the organization's ability to successfully achieve its expansion goals.
Instructions
The CFO has provided you with a copy of the organization's financial statements. This information will be critical in evaluating the organization's financial capacity to support the proposed expansion of services into the rural areas of the state.You are asked to review these financial statements (which include the Income Statement, Statement of Cash Flows, and the Balance Sheet) and prepare an executive summary outlining the financial strength of the organization and evidence to support the expansion. Your executive summary should include the following:
1. An overview of the issue.
2. A review of critical financial ratios (Liquidity, Solvency, Profitability, and Efficiency) based on financial statements.
3. Inferences of forecasts, estimates, interpretations, and conclusions based on the key ratios.
4. Provide a recommendation based on ration analysis.
Format your homework according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the homework, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.