How do longwoods current and acid test ratios

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Reference no: EM133872937

Financial Statement Analysis

How do horizontal and vertical analyses complement each other in providing a comprehensive view of a company's financial health? Provide a scenario in which one type of analysis be more helpful than the other.

In 300-400 words, please post your initial response to the prompt.You will also post a minimum of 2 response to other student response. Each response must be a minimum of 200 words

Model 3: Assignment #3

Purpose of Assignment:

The purpose of this assignment is to prepare a Balance Sheet and Statement of Operations for the given healthcare organizations. You will also prepare a memo explaining how healthcare leaders can use this financial information to make informed decisions.

Steps to Complete Assignment:

Complete chapter 4 problem 13 using this required template Download using this required template.
Prepare a memo in which you address the following:
Analyze the Liquidity Ratios, specifically:
How do Longwood's current and acid test ratios compare to industry benchmarks?
What do these comparisons reveal about the hospital's short-term financial stability? Get online assignment help in the USA!
How is Longwood positioned to handle unexpected financial challenges or opportunities?
Analyze the Profitability Ratios, specifically:
How do Longwood's operating margin and return on total assets compare to industry standards for a 350-bed facility?
How does Longwood's salary and benefit expense as a percentage of total operating expense impact its profitability?
Based on the profitability ratios, what areas should Longwood's management focus on to improve financial performance?
Analyze the Activity Ratios, specifically:
How do Longwood's days in accounts receivable and average payment period compare to industry benchmarks?
What do the total asset turnover and fixed asset turnover ratios reveal about Longwood's efficiency in utilizing its resources?
Based on the activity ratios, what specific strategies could Longwood implement to improve its operational efficiency?
Analyze the Capital Structure Ratios, specifically:
How do Longwood's long-term debt to net assets and net assets to total assets ratios compare to industry standards for a 350-bed hospital?
What do these capital structure ratios suggest about Longwood's financial leverage and long-term financial stability?
Based on the capital structure analysis, what recommendations would you make to Longwood's leadership regarding future financing decisions?

Reference no: EM133872937

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