Writing Homework Help

Scenario

You work for Healing Thyme Hospital. The hospital’s board of directors is looking to purchase Lueders Medical Clinic, a local medical practice, and has asked you to provide them with insights on how the clinic is performing financially. You will need to analyze the clinic’s performance and recommend whether purchasing the clinic is a good investment.

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Directions

The board of directors for the hospital has asked you to complete the financial analysis workbook and then write a brief that interprets your calculations and evaluates the clinic’s business performance. You will send your financial analysis to the board of directors to support your recommendation on whether the hospital should purchase the clinic.

• Financial Analysis Workbook
  First, read the Lueders Medical Clinic 2017–2018 Financial Statements, which is linked in the Supporting Materials section. Then, perform the financial analysis of the clinic using the Financial Analysis Workbook Excel spreadsheet, which is also linked in the What to Submit section. This way, you can apply the ratios and vertical and horizontal analyses to the clinic’s annual financials.

The board will review your report to verify that you:

• Use the base amounts from the financial statements to perform the vertical analysis
• Calculate the ratios accurately using the formulas provided in the workbook
• Validate the accuracy of the ratios by showing the calculations and using the appropriate units

As you complete each section, it may be helpful to take notes about what you learn. Then, you can use your notes to evaluate the business’s financial status and write your brief to the board of directors.

• Brief to the Board of Directors
  Once you have completed your financial analysis, interpret the ratios and vertical and horizontal analyses to evaluate the business performance of Lueders Medical Clinic.

  In your brief, make sure to refer to your financial analysis workbook. It is important that you explain what each ratio tells you about the clinic’s performance. Then, recommend whether it is a good investment for the hospital to purchase the clinic. Use your financial analysis workbook to explain your decision.

Specifically, address the following in your brief:

• Examine the clinic’s financial performance.
  • How does the clinic’s financial performance compare against industry averages and past performance?
  • What are the strengths and weaknesses of the clinic’s financial performance?
• Recommend appropriate actions using your financial analysis as support.
  • Is purchasing the clinic is a good or bad investment?
  • What are some potential areas of improvement?

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What to Submit

For this project, you must submit the following:

1. Financial Analysis Workbook
   Download and complete the Financial Analysis Workbook Excel spreadsheet with two worksheets. Use the first worksheet to perform the horizontal and vertical analyses. Use the second worksheet to perform the ratio analysis. Refer to the Lueders Clinic 2017–2018 Financial Statements to calculate each ratio. Your workbook must include two completed worksheets (Horizontal and Vertical Analysis and Ratio Analysis). It should be presentable and annotated for your audience.
2. Brief to the Board of Directors
   Your brief to the hospital’s board of directors should be 250–500 words or about 1–2 pages in length. Cite your sources appropriately