Question

Download and review the financial statements of Ascension Health-a non-profit organization.

Ascension
Consolidated Balance Sheets (Dollars in Thousands)
December 31, June 30, 2017 2017 Assets (unaudited) Current assets: Cash and cash equivalents 473,278 $         857,605 $           Short-term investments 115,018           103,857             Accounts receivable, less allowance for doubtful accounts ($1,255,955 and $1,316,163 at December 31, 2017 and June 30, 2017, respectively) 2,817,396        2,758,554          Inventories 355,150           354,041             Due from brokers (see Notes 4 and 5) 108,494           197,195             Estimated third-party payor settlements 202,236           133,715             Other (see Notes 4 and 5) 851,802           762,900             Total current assets 4,923,374        5,167,867         
Long-term investments (see Notes 4 and 5) 18,179,316     16,999,371       
Property and equipment, net 9,076,785        9,182,978         
Other assets: Investment in unconsolidated entities 1,090,405        1,196,651          Capitalized software costs, net 869,708           880,819             Other (see Notes 4 and 5) 954,963           892,739             Total other assets 2,915,076        2,970,209         
Total assets 35,094,551 $   34,320,425 $     
Continued on next page.
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December 31, June 30, 2017 2017 Liabilities and net assets (unaudited) Current liabilities: Current portion of long-term debt 95,870 $               298,270 $               Long-term debt subject to short-term remarketing arrangements* 897,390               999,785                 Accounts payable and accrued liabilities (see Notes 4 and 5) 2,475,333            2,742,377              Estimated third-party payor settlements 465,508               480,694                 Due to brokers (see Notes 4 and 5) 233,665               115,783                 Current portion of self-insurance liabilities 232,681               206,787                 Other 434,984               340,756                 Total current liabilities 4,835,431            5,184,452             
Noncurrent liabilities: Long-term debt (senior and subordinated) 5,904,323            5,699,440              Self-insurance liabilities 490,344               513,010                 Pension and other postretirement liabilities 1,153,384            1,318,331              Other (see Notes 4 and 5) 1,206,225            1,191,068              Total noncurrent liabilities 8,754,276            8,721,849              Total liabilities 13,589,707         13,906,301           
Net assets: Unrestricted    Controlling interest 18,882,439         17,933,923               Noncontrolling interests 1,901,908            1,798,361              Unrestricted net assets 20,784,347         19,732,284           
Temporarily restricted 499,959               468,938                 Permanently restricted 220,538               212,902                
Total net assets 21,504,844         20,414,124           
Total liabilities and net assets 35,094,551 $       34,320,425

Download and review the financial statements of HCA Holdings Inc. a for profit organization.

Assets

Fiscal year is January-December. All values USD millions.	2013	2014	2015	2016	2017	5-year trend
Cash & Short Term Investments	476M	630M	791M	695M	732M
Cash Only	414M	566M	741M	646M	732M
Short-Term Investments	62M	64M	50M	49M	-
Cash & Short Term Investments Growth	-	32.35%	25.56%	-12.14%	5.32%
Cash & ST Investments / Total Assets	1.65%	2.02%	2.42%	2.06%	2.00%
Total Accounts Receivable	5.21B	5.7B	5.9B	5.84B	6.5B
Accounts Receivables, Net	5.21B	5.69B	5.89B	5.83B	6.5B
Accounts Receivables, Gross	10.7B	10.71B	11.22B	10.81B	11.99B
Bad Debt/Doubtful Accounts	(5.49B)	(5.01B)	(5.33B)	(4.99B)	(5.49B)
Other Receivables	5M	5M	9M	9M	-
Accounts Receivable Growth	-	9.32%	3.49%	-1.07%	11.41%
Accounts Receivable Turnover	6.56	6.48	6.73	7.11	6.71
Inventories	1.18B	1.28B	1.44B	1.5B	1.57B
Finished Goods	-	-	-	-	-
Work in Progress	-	-	-	-	-
Raw Materials	-	-	-	-	-
Progress Payments & Other	-	-	-	-	-
Other Current Assets	1.17B	1.32B	1.1B	1.05B	1.17B
Miscellaneous Current Assets	1.17B	1.32B	1.1B	1.05B	1.17B
Total Current Assets	8.04B	8.93B	9.23B	9.09B	9.98B

	2013	2014	2015	2016	2017	5-year trend
Net Property, Plant & Equipment	13.62B	14.36B	15.01B	16.35B	17.9B
Property, Plant & Equipment - Gross	31.07B	32.98B	34.61B	37.06B	40.08B
Buildings	11.21B	11.94B	12.53B	13.55B	-
Land & Improvements	1.49B	1.52B	1.52B	1.61B	-
Computer Software and Equipment	-	-	-	-	-
Other Property, Plant & Equipment	-	-	-	-	-
Accumulated Depreciation	17.45B	18.63B	19.6B	20.7B	22.19B
Total Investments and Advances	569M	659M	610M	542M	617M
Other Long-Term Investments	448M	494M	432M	336M	418M
Long-Term Note Receivable	19M	20M	35M	36M	-
Intangible Assets	5.9B	6.42B	6.73B	6.7B	7.39B
Net Goodwill	-	6.02B	6.34B	6.33B	-
Net Other Intangibles	-	399M	393M	374M	-
Other Assets	684M	819M	1.12B	1.04B	710M
Tangible Other Assets	447M	600M	1.12B	1.04B	710M
Total Assets	28.83B	31.2B	32.74B	33.76B	36.59B
Assets - Total - Growth	-	8.21%	4.95%	3.10%	8.40%

Liabilities & Shareholders' Equity

	2013	2014	2015	2016	2017	5-year trend
ST Debt & Current Portion LT Debt	786M	338M	233M	216M	200M
Short Term Debt	-	-	-	-	-
Current Portion of Long Term Debt	786M	338M	233M	216M	200M
Accounts Payable	1.8B	2.04B	2.17B	2.32B	2.61B
Accounts Payable Growth	-	12.87%	6.63%	6.82%	12.42%
Income Tax Payable	-	-	-	-	-
Other Current Liabilities	3.11B	3.11B	3.11B	3.3B	3.35B
Dividends Payable	-	-	-	-	-
Accrued Payroll	1.19B	1.37B	1.23B	1.27B	1.37B
Miscellaneous Current Liabilities	1.91B	1.74B	1.88B	2.04B	1.98B
Total Current Liabilities	5.7B	5.48B	5.52B	5.83B	6.16B
Long-Term Debt	27.59B	29.31B	30.26B	31.16B	32.86B
Long-Term Debt excl. Capitalized Leases	27.59B	29.31B	30.26B	31.16B	32.86B
Non-Convertible Debt	27.59B	29.31B	30.26B	31.16B	-
Convertible Debt	-	-	-	-	-
Capitalized Lease Obligations	-	-	-	-	-
Provision for Risks & Charges	949M	1.08B	1.12B	1.15B	1.2B
Deferred Taxes	-	-	-	-	-
Deferred Taxes - Credit	-	-	-	-	-
Deferred Taxes - Debit	-	-	-	-	-
Other Liabilities	1.53B	1.83B	1.9B	1.25B	1.37B
Other Liabilities (excl. Deferred Income)	1.53B	1.83B	1.9B	1.25B	1.37B
Deferred Income	-	-	-	-	-
Total Liabilities	35.76B	37.7B	38.79B	39.39B	41.59B
Non-Equity Reserves	-	-	-	-	-
Total Liabilities / Total Assets	124.03%	120.83%	118.46%	116.69%	113.65%
Preferred Stock (Carrying Value)	-	-	-	-	-
Redeemable Preferred Stock	-	-	-	-	-
Non-Redeemable Preferred Stock	-	-	-	-	-
Common Equity (Total)	(8.27B)	(7.89B)	(7.6B)	(7.3B)	(6.81B)
Common Stock Par/Carry Value	4M	4M	4M	4M	-
Retained Earnings	(9.4B)	(7.58B)	(7.34B)	(6.97B)	-
ESOP Debt Guarantee	-	-	-	-	-
Cumulative Translation Adjustment/Unrealized For. Exch. Gain	11M	(36M)	(74M)	(211M)	-
Unrealized Gain/Loss Marketable Securities	7M	13M	13M	7M	-
Revaluation Reserves	-	-	-	-	-
Treasury Stock	-	-	-	-	-
Common Equity / Total Assets	-28.68%	-25.30%	-23.21%	-21.63%	-18.60%
Total Shareholders' Equity	(8.27B)	(7.89B)	(7.6B)	(7.3B)	(6.81B)
Total Shareholders' Equity / Total Assets	-28.68%	-25.30%	-23.21%	-21.63%	-18.60%
Accumulated Minority Interest	1.34B	1.4B	1.55B	1.67B	1.81B
Total Equity	(6.93B)	(6.5B)	(6.05B)	(5.63B)	(5B)
Liabilities & Shareholders' Equity	28.83B	31.2B	32.74B	33.76B	36.59B

Review the companies’ balance sheets, statements of income/operations, and statements of cash flows. Identify and describe five similarities and five differences between the two companies' financial statements.
Download and review the financial statements of Ascension Health-a non-profit organization at Community and Investor Relations. Download and review the financial statements of HCA Holdings Inc. HCA Healthcare Inc. a for profit organization.
Review the companies’ balance sheets, statements of income/operations, and statements of cash flows.

1.) Identify and describe five similarities and five differences between the two companies' financial statements.

Answer 1

Similarities

1. Both HCA & Ascesnsion has reported income statement, statement of financial position, statement of changes in equity and cash flow.

2. Both HCA & Ascesnsion use same method (FIFO method) for inventory valuation

3. Both HCA & Ascesnsion has prepared cash flow statement using indirect method

4. Both HCA & Ascesnsion use straight line method for depreciation although the estimated life of the assets are different

5. Both HCA & Ascesnsion non-controlling interest apart from the parent holding

Differences

1. HCA financial year ending December where as Ascension financial year ending June

2. HCA has seperately reported depreciation amount in balance sheet in arriving at the net book value where as Ascension has straight away calculated net book value

3. HCA has good will where as Ascension don’t

4. HCA terms net income where as Ascension term as excess of revenues and gains over expenses

5. HCA has prepared financial statement in million where as Ascension has prepared in thousand