Question

2) Write your impression and or comment about the assets, liabilities, net worth, revenues, etc. found on your balance sheet. Would you prefer more details? Yes or No? Explain your reasoning.

3) Do you think the balance sheet you have posted/reported gives you useful information? Why or Why not? How do you think it could be improved? Explain your reasoning.

4) What do you believe the proportion of revenues from different sources is for any healthcare organization?Do you believe this proportion (payer mix) will change in the future? Why?Explain your reasoning.

PLEASE PROVIDE LENGTHY EXPLANATION :) Chapter 5 is not needed..

Fiscal Year Ends in December USD in Thousand Except per Share Data ASSETS Real estate properties Real estate investments Revolving line of credit Term loans net Secured borrowings net Unsecured borrowings e 3,327,393 3,325,889 3,325,885 3,324,390 3,322,888 Accrued expenses and other liabilities Deferred income taxes Total liabilities Equity: Common stock Corrmmon stock-additional paid-in capital Cumulative net earnings Q3 18 02 18 Q118 Q417 Q3 17 360,000 220,000 355,000 290,000 365,000 900,847 902,168 910,019 901,670 903,221 - 52,77553,098 53,419 7,700,636 7,571,661 7,611,038 7,655,960 7,977,043 253,500 257,049 262,573 295,142 285,690 14,19814,718 15,977 17,747 17,589 Less accumulated depreciation 1,515,846 1,475,463 1,420,332 1,376,828 1,432,154 Real estate properties net 6,184,790 6,096,198 6,190,706 6,279,132 6,544,889 Investments in direct tinancing leases net Mortgage notes receivable net 708,178 703,309 653,319 671,232 666,606 Real estate properties, total Other investments net Total Investment in unconsolidated joint venture Assets held for sale net Total investments Cash and cash equivalents Restricted cash Accounts receivable net Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY 4,855,99 4,719,824 4,922,229 4,885,047 4,94,80 20,069 20,033 19,859 19,831 19,806 163,467 349,465 364,932 364,965 364,997 5,012,544 4,997,329 4,943,600 4,936,302 4,925,908 2,068,295 2,011,689 1,933,153 1,839,356 1,776,956 7,056,435 7,148,972 7,208,957 7,315,329 7,576,492 511,668 377,206 322,249276,342 273,821 8,212,304 7,948,867 Cumulative dividends paid Accumulated other comprehensive loss Total stockholders' equity Noncontrolling interest Total equity Owners' Equity: Total liabilities and equity 3,606,181 3,473,406 3,341,765 3,210,248 3,080,999 32,159 32,820 34,673 36,516 37,733 17,826 3,782143,419 86,699 17,324 7,618,088 7,562,780 7,709,298 7,714,886 7,905,370 9,768 10,951 71,231 85,937 24,318 1,371 , 7,868 10,871 10,596 336,824 320,140 319,713 279,334 269,746 644,20 644,39 645,214 644,690 644,571 31,711 33,301 39,305 37,587 36,045 8,641,964 8,574,139 8,792,629 8,773,305 8,890,646 32,382 30,157 16,399 30,150 34,843 3,462,345 3,525,483 3,538,448 3,555,091 3,606,828 323,621 328,827 331,952 333,167 336,011 3,785,966 3,854,315 3,870,400 3,888,258 3,912,839 8,641,964 8,574,139 8,792,629 8,773,305 8,890,646

Answer 1

2) Assets, liability and equity are the three main components of the balance sheet.

Assets
There are two main types of assets: Non-current assets and Current Assets.

Non-current assets are defined as anything that is not a current asset. This includes fixed assets, such as property, plant and equipment (PPE).In this case it is Real Estate Properties and Investments.

Unless the company is in financial distress and has liquidating assets, investors need not pay too much attention to fixed assets. Companies are often unable to sell their fixed assets within any reasonable amount of time these are carried on to the balance sheet at cost irrespective of their actual value. Thus the company can grossly inflate the actual value, leaving investors with questionable and hard-to-compare asset figures.

Current assets are assets to be used up or converted into cash within a business cycle - it is generally twelve months. Three very important current asset items found on the balance sheet are:cash,inventories and accounts receivables.In this case your cash and cash equivalents are fluctuating in a manner which is high at the end and beginning and in the middle it is at its lowest.

Investors normally are attracted to companies with plenty of cash on their balance sheets. After all, cash offers protection against tough times, and it also gives companies more options for future growth. Growing cash reserves often signal strong company performance. Indeed, it shows that cash is accumulating so quickly that management doesn't have time to figure out how to make use of it. A dwindling cash pile could be a sign of trouble. That said, if loads of cash are more or less a permanent feature of the company's balance sheet, investors need to ask why the money is not being put to use. Cash could be there because management has run out of investment opportunities or is too short-sighted to know what to do with the money.

Inventories/Common Stock are finished products that have yet to be sold. As an investor, you want to know if a company has high amount of money blocked in its inventory. Companies have limited funds available. To generate the cash to pay for the expenses and generate a profit, they must sell the inventory they have purchased from suppliers. Inventory turnover (COGS/Average Inventory) measures how quickly the company is transferring its inventory from the warehouse to clients. If inventory grows faster than sales, it is almost always a sign of deteriorating fundamentals.In this case inventories are consistently maintained.

Receivables are outstanding (uncollected bills).In this case it is ascending from the start. Analyzing the speed at which a company collects what it's owed can tell you a lot about its financial efficiency. If a company's collection period is growing longer, it could mean problems ahead. The company may be letting customers stretch their credit in order to recognize greater top-line sales and that can spell trouble later on, especially if customers face a cash crunch. Getting money right away is preferable to waiting for it - since some of what is owed may never get paid. The quicker a company gets its customers to make payments, the sooner it has cash to pay for salaries, merchandise, equipment, loans, and best of all, dividends and growth opportunities.

Liabilities
There are current liabilities and non-current liabilities.

Current liabilities are obligations the firm must pay within a year, such as payments owing to suppliers.

Non-current liabilities, meanwhile, represent what the company owes in a year or more time. Typically, non-current liabilities represent bank and bondholder debt.

You usually want to see a manageable amount of debt. When debt levels are falling, that's a good sign. Generally speaking, if a company has more assets than liabilities, then it is in decent condition. By contrast, a company with a large amount of liabilities relative to assets ought to be examined with more diligence. Having too much debt relative to cash flows required to pay for interest and debt repayments is one way a company can go bankrupt.


The two important equity items are paid-in capital and retained earnings.

Paid-in capital is the amount of money shareholders paid for their shares when the stock was first offered to the public. It basically represents how much money the firm received when it sold its shares. In other words, retained earnings are a tally of the money the company has chosen to reinvest in the business rather than pay to shareholders. Investors should look closely at how a company invests retained profits and how a company generates a return.

Information of debt, Equity and Goodwill can be found on the balance Sheet.

Its often hard-to-measure intangible assets. Intellectual property are all common assets in today's marketplace.

Off-balance sheet debts is form of financing in which large capital expenditures are kept off of a company's balance sheet using classification methods. Companies often use Off Balance Sheet Financing to keep the debt levels low.

3) Balance Sheet can serve as tool for company's analysis, but must not be solely rely on.Balance Sheet alone is difficult to be relied upon in making decisions, and the reason for that is the process that surrounds the preparation of the Balance Sheet itself.

Balance Sheet relying on the principle of historical cost, reduces the credibility of information.

Because users of Balance Sheet, need factual information to make investment and other similar decisions.

Getting rid of debt: It is difficult to get a hand on debt.Spending more than one can afford and don’t save enough.To improve your balance sheet,you can focus on reducing the major expenses and use the resulting surplus to eliminate debt.In your case the Secured Borrowings have been reduced to zero in this case, it is a good sign.

Save money effortlessly:Stashing money away for unwanted and unnecessary expenses is strictly required to be eliminated,without a budget plan, the best-laid plans can get derailed. Keep a note of your spending, establish specific goals and stick with them.

Cover your valuable assets with a proper insurance policy and using assets more efficiently. Asset turnover reflects the amount of revenue generated for each dollar of assets. The ratio measures a company’s efficiency at using its assets to generate sales, with the higher the number the better.