Finance, understanding how it affects the smallest business to the largest organization, is the origin to financial success in businesses. According to Gitman (2006), finance is the art and science of managing money. Virtually every individual business and large organization, Be the organization for profit or non-profit, depends on the rates at which these entities earn, or raise money, and the rate at which they spend or invest these earned monies. Understanding these financial processes will enable the financial manager, or even the non-financial managers to more effectively interact with financial personnel, processes, and procedures.
Patton-fuller community hospital case …show more content…
The revenues section shows net patient revenue plus other revenue, and these are totaled together. The section of non-operating and operating income is where the total investment income is. The last section of the statement is the net income. The net income consists of the total revenue minus the expenses and losses. This section is used for the planning and controlling of costs. . (Patton-Fuller, 2011).
The Patton-Fuller financial statements show differences in the audited vs. the unaudited statements. It shows how they are improving or not, the effects of revenue in the report, and how it is used to control and planning.
It seems the hospital’s revenues are grouped and controlled appropriately.
Conclusion There seems to be some inconsistencies in the financial statement itself. As long as the financial reports are reviewed on a regular basis, it should alleviate any problems that may arise, and allow these problems to be fixed. If the mistakes seem to keep happening, then the company may find itself in a lot of financial trouble, which in turn may lead to the demise of the company.
Reviewing cannot be stressed enough. You need to be able to see where your problems are at in