Attached please find two PDF files and one Word file.I will not accept your bid unless you read the Word file and skim through the two PDF files. It is a small project and is due Sunday, June 28, 2020

Financial Statement Project 2

For this project, you will be analyzing the financial statements of two county hospital districts: Dallas County Hospital District: Parkland Health & Hospital System and Bexar County Hospital District: University Health System. The audited financial statements of each are provided. You will draw conclusions about the overall health of each hospital district.

Your source documents for the information you will be using for this project will primarily be the hospitals’ annual financial statements. To follow are a list of questions and other requirements. You are to use the financial statements provided for each hospital district to answer the questions. As you answer the question, you only need to take into consideration the Health System for each, not the various component units.

As you answer the following questions, remember that the financial statements present summarized information. You can often find more detailed information in the footnotes to the financial statements. Be sure to utilize both sources of information in answering the questions. Most annual financial statements/reports will also include a Management Discussion & Analysis (MD&A) section. This section can provide useful background information in understanding management’s perspective as to why the financial results turned out as they did. You should primarily focus on the audited financial statements and footnotes when answering the questions and then supplement this with information from the MD&A section as needed.

Write all your answers in red font below each question, otherwise I would assign 0 points for it. Strictly follow the “Submission Instructions” at the end of this document.

Calculate and interpret the following ratios and measures.

1. Measuring liquidity: Calculate the current ratio and the days cash on hand for both hospitals for the latest year presented. What do each of these ratios measure? How easily can the hospitals meet their current obligations? Which hospital is more liquid?

2. Measuring asset management: Calculate the fixed asset turnover ratio, the total asset turnover ratio, the days in patient accounts receivables, and average age of plant. What do each of these ratios measure? Which hospital appears to be doing a better job at asset management based on this limited data?

3. Measuring leverage : Calculate the debt ratio and the times-interest-earned ratio for the latest year presented. What do these ratios measure? How easily can each hospitals meet its long-term obligations?

4. Measuring profitability:

• • Calculate the following ratios for the latest year presented: Total margin ratio and operating margin ratio. What do these ratios measure? How profitable are the two hospitals?

  • Calculate Return on Assets for the two most recent years. What does this ratio measure? What is the trend? How do the hospitals compare in this area?

This section is the overall analysis of the two hospitals. Which hospital do you believe is healthier? Why? Be specific in your reasoning.

Be sure to fully support your conclusion of which hospital is healthier. Be sure to include a variety of measures, not just one measure of financial health.

You should provide your answers for the financial statement project part 2 in one cohesive document (11 point font, red font, Calibri or Candara, 1 inch margins, Word format). Use headings to make your document readable. I would suggest headings for each of the sections of part 2. Please use proper English, grammar, and spelling. Your paper will be checked for plagiarism. You will submit your final paper on Blackboard. Your project must be submitted no later than Sunday, June 28, 2020, 11:59am Eastern Time.