Patton Fuller Community Hospital Financial Analysis

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Financial Data Analysis Patton – Fuller Community Hospital is a stock corporation that owns the hospital and its related functions. This report analyzes the financial performance of Patton-Fuller hospital for the year 2009. The financial performance of the year 2009 has been compared with performance in 2008. Both the statement of revenue and expenses and balance sheet has been compared. The amount of change and percentage change is computed. Significant changes between the years in Balance sheet In the year 2008, the current assets were $13,026 while in 2009 they amounted to $127,867. There was a reduction of assets by $2,159. The percentage of the decrease was 1.66%. The percentage of increase indicates that the hospital was performing…show more content…
The increase in the total liabilities was $ 15,427. This shows that the company increased its borrowing. For example, the accounts payable in the year 2008 were $4,185 while in 2009, they were $9,198. This shows that the hospital purchased more inventories on credit. The biggest portion of current liabilities in the year 2009 is long term debt’s current portion. The long term debt increased by $ 10,414. The total liabilities for Patton-Fuller Community hospital in the year 2008 were $213,450. This amount increased to $462,153 in the year 2009. The percentage increase was 116.50%. This indicates that the hospital made more borrowings in the year 2009.The financial statements of the hospital indicate that there was no change in equity. The amount of common stock in both years was $50. Also, there was no additional paid in capital. Patton-Fuller Community hospital performed well in the year 2008 than in 2009. This is because the retained earnings for the year 2008 were $335,035. In the year 2009, they were $ 125,564. They decreased by $ 209,471 which is a percentage of 62.52%.Total liabilities and equity in the years 2008 and 2009 were $ 548,535 and $ 587,767 respectively. They increased by $ 39,232 which was…show more content…
To raise more revenues, Patton-Fuller hospital might have provided more credit to clients and also more investment in inventories and fixed assets to enhance revenues. The increase in current assets and fixed assets is financed by debt. This is clear from increase in accrued expenses, account payable and long-term debt in the year 2009. It is clear that the hospital is relying more on debt financing and this is evident by the decrease in retained earnings by

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