How the tools contribute to the decision-making process


Discussion Post

For your Competency Discussion, consider how finance decisions are made where you work or at an organization with which you are familiar. Reflect on the tools that are used to determine these finance decisions. Finally, think about how these tools contribute to the decision-making process in the organization where you work or at an organization with which you are familiar.

To begin this Competency and meet your required engagement, post in the Discussion area a brief description of the organization with which you are familiar. Then describe the finance tools used to make finance decisions. Finally, explain how these tools contribute to the decision-making process.

Homework I

The Module Pre-Homework is your opportunity to practice applying module content before submitting the Competency Homework. In the Final Homework, you will be asked to conduct a 5-year analysis of Jiranna Healthcare's outpatient operational and financial data in order to determine whether or not it is an attractive project.

To prepare for your Final Homework, complete the following 5-year calculations:

1. Net sales, operating expenses, operating income, and net income of Jiranna Healthcare.
2. Total profit margin, asset turnover, return on assets, and return on net worth.
3. Current ratio, day's cash on hand, and working capital.
4. Debt ratio and times interest earned ratio.
5. Complete a DuPont analysis for each of the five most recent years.

Next, reflect on what each of the resulting data mean in terms of the:

1. Significance of the trend results.
2. Company's profitability.
3. Company's liquidity.
4. Company's long-term solvency.
5. Company's individual DuPont characteristics (e.g., total margin, total asset turnover & equity multiplier) and trends across the analysis period.

Finally, think about whether you would recommend purchasing Jiranna Healthcare and the rationale for your recommendation.
For this Module Pre-Homework, create a rough draft of the 5-year analysis you conducted of Jiranna Healthcare outpaitent operational and financial data. Be sure to review the Homework instructions for more information.

Homework II

The Module Pre-Homework is your opportunity to practice applying module content before submitting the final Competency Homework. In the Final Homework, you will be asked to complete a capital project spreadsheet based on the case study provided. You also will be asked to conduct a budgeting evaluation.

To prepare for your Homework, review Capital Project Case Study and compete the capital project worksheet. Next, consider whether the project is acceptable assuming Jiranna Healthcare has a corporate policy of not accepting projects that take more than 3.5 years to pay for themselves, and assuming an 11% cost of capital. Then, review the Variance Analysis Case Study and reflect on the calculations that you conduct to answer questions regarding Jiranna's profit forecast and revised projections and budgeting challenges as well as recommendations you would make for fee-for-service healthcare organizations and capitated healthcare organizations.

For this Module Pre-Homework, create a draft of your report explaining whether the Capital Project Case Study project is acceptable and why. Then create a draft of your budgeting evaluation. Be sure to review the Final Homework instructions for more information.

Format your homework according to the give formatting requirements:

1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.

2. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.

3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.

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Business Management: How the tools contribute to the decision-making process
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