Financial Statement Analysis: Average Payment Period Ratio 1

Average Payment Period Ratio = Current Liabilities / ([Total Operating Expenses – Depreciation and Amortization Expenses] / 365)

Part 1: Average Payment Period Ratio Report Development

For this assignment, you will develop and analyze financial statements. Part 1 of the assignment includes describing what an average payment period is and how it is calculated. Use the years and the dollar amounts provided in the table below:

Operating Expenses

Depreciation and Amortization

Difference

Days per Year

Average Cash Expense per Day

15,255,263.00

553,219.00

365

12,589,823.00

665,393.00

365

Year

Current Liabilities

Average Cash Expense Per Day

Average Payment Period Days

2011

2,550,263.00

2012

4,553,681.00

Using an Excel spreadsheet (or any other tool for performing calculations), determine the average payment period for FY2011 and FY2012. Use the following steps:

  • Use the provided dollar amount of total operating expenses and depreciation and amortization.
  • Subtract depreciation and amortization from the operating expenses and divide by 365 days to compute the average cash expense per day.
  • Identify the dollar amounts for current liabilities on the balance sheet.
  • Divide the current liabilities by the average cash per day.
  • Determine if the trend is positive or negative for the average payment period days.
  • Determine if the 2011 and 2012 average payment period days are above or below the industry benchmark.

Part 2: Risks and Benefits Analysis

Based on your calculations in Part 1, address the following:

  • Identify at least two risks if the trend is negative or two benefits if it is positive. What is the potential impact on the hospital? Support your assertions with authoritative references.
  • Discuss possible contributing factors to the positive or negative trend and any strategies the hospital could use to ensure the currently established industry benchmark is met.

Develop an 8–10-slide PowerPoint presentation (excluding the title and reference slides).

Include the completed average payment period ratio table in your presentation. Include detailed speaker notes with APA format, including references. Use a properly formatted APA 6th edition figure caption for the table or any other figures or charts. Use at least 5–7 scholarly sources in your research.

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10