Reference no: EM133537724
Example: Now that you have defined a pro forma income statement and its purpose, when would you use a pro forma income statement as a health care manager? The director of population health would like to purchase a new low-dose CT scan to perform a new service of lung screenings. The pro forma income statement details the expected volume, revenue, and related expenses.
1. Now that you have defined a pro forma income statement and its purpose, when would you use a pro forma income statement as a health care manager? How is this process similar to a budgeting process? Note: Your response must be different from the example provided above.
2. What is the importance of data analysis in the accounting process? How is it important to you as a health care manager?
3. What is depreciation and its 3 elements? How is straight-lined depreciation calculated? How is this used by health care managers?
The 3 basic tools for financial statements are ratio, horizontal, and vertical analysis.
1. What is the importance of ratio analysis? What are the four main categories? How would a health care manager use ratio analysis?
2. What is the importance of horizontal analysis? How would a health care manager use horizontal analysis?
3. What is the importance of vertical analysis? How would a health care manager use vertical analysis?
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