1. 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:

2. An overview of the issue.
A review of critical financial ratios (Liquidity, Solvency,
Profitability, and Efficiency) based on financial statements.
Inferences of forecasts, estimates, interpretations, and
conclusions based on the key ratios.
Provide a recommendation based on ration analysis.
Resources
This
link
has information for creating an executive summary.
Grading Rubric:
1.
Comprehensive identification of summary of the issue. Includes
multiple examples or supporting details.
2. Clear and thorough review of critical financial ratios--
Liquidity, Solvency, Profitability, and Efficiency--based on
financial statements. Includes multiple examples or supporting
details per topic.
3. Clear and thorough inferences of forecasts, estimates,
interpretations, and conclusions based on the key ratios.
Includes multiple examples or supporting details per topic.
4. Comprehensive recommendation, based on ration analysis.
Includes multiple examples or supporting details.