Running Head: CAPITAL DECISIONS 1 CAPITAL DECISIONS 1 Capital Decisions Keri King Module 4 5/3/2020 Introduction To meet operational costs, expense obligations, and make investments, every organization needs to ensure that its capital management is under the right hands. The individuals tasked with capital management ensure that capital and assets are well organized to facilitate expansion. For this to happen, organizations need to ensure that they evaluate their financial statements and financial analysis methods. These methods help organizations make appropriate decisions regarding capital investments, which is critical for growth. Hence, this report will analyze two articles that provide an in-depth analysis of the financial matters of healthcare companies. Article Review 1 In his book, Argan (2013) states that healthcare companies face a harder time acquiring expansion financing because of their liquidity ratio. The author further explains that healthcare companies face a harder time purchasing short-term liquidity due to their inability to make profits as fast as they generate sales. The expansion of a healthcare center might take more time than the original estimated time, which then causes a push back in the timeline given by financial institutions to start the repayment plan. In most cases, other financial or lending institutions have the needed amount organizations ask for and also provide thorough advice on whether the investment is worth the risk. Argan (2013) states that the two major issues brought up by the turnaround company on the Caribbean expansion were one: the weakness in their corporate structure and the management reporting and ranks. The concerns around this came up because the turnaround company wondered if the institution had proper management controls in place to ensure high profitability as well as quality (Argan, 2013). High quality comes with high profitability because people need assurance on the condition they receive. The turnaround company also brought up the issue of management controls to ensure that ethics can apply in the organization in support of the right decision making. Healthcare facilities require looking for other means of securing their finances beyond their banks. According to Argan (2013), other financial institutions, aside from banks, offer lower interest rates, are more flexible, which are luring factors to consider. In his article, the author states that securing financing beyond banks gives companies a better chance of expansion as opposed to looking for finances in banks. Article Review 2 In the article, the authors make a good argument for the need for broadening the methods which healthcare providers use to calculate break-even analysis. Through the different options, the authors show different sectors where hospitals lose money they should be gaining ...

1. Running Head: CAPITAL DECISIONS 1
CAPITAL DECISIONS
1
Capital Decisions
Keri King
Module 4
5/3/2020
Introduction
To meet operational costs, expense obligations, and make
investments, every organization needs to ensure that its capital
management is under the right hands. The individuals tasked
with capital management ensure that capital and assets are well
organized to facilitate expansion. For this to happen,
organizations need to ensure that they evaluate their financial

2. statements and financial analysis methods. These methods help
organizations make appropriate decisions regarding capital
investments, which is critical for growth. Hence, this report will
analyze two articles that provide an in-depth analysis of the
financial matters of healthcare companies.
Article Review 1
In his book, Argan (2013) states that healthcare companies face
a harder time acquiring expansion financing because of their
liquidity ratio. The author further explains that healthcare
companies face a harder time purchasing short-term liquidity
due to their inability to make profits as fast as they generate
sales. The expansion of a healthcare center might take more
time than the original estimated time, which then causes a push
back in the timeline given by financial institutions to start the
repayment plan. In most cases, other financial or lending
institutions have the needed amount organizations ask for and
also provide thorough advice on whether the investment is
worth the risk.
Argan (2013) states that the two major issues brought up by the
turnaround company on the Caribbean expansion were one: the
weakness in their corporate structure and the management
reporting and ranks. The concerns around this came up because
the turnaround company wondered if the institution had proper
management controls in place to ensure high profitability as
well as quality (Argan, 2013). High quality comes with high
profitability because people need assurance on the condition
they receive. The turnaround company also brought up the issue
of management controls to ensure that ethics can apply in the
organization in support of the right decision making.
Healthcare facilities require looking for other means of securing
their finances beyond their banks. According to Argan (2013),
other financial institutions, aside from banks, offer lower
interest rates, are more flexible, which are luring factors to
consider. In his article, the author states that securing financing
beyond banks gives companies a better chance of expansion as
opposed to looking for finances in banks.

3. Article Review 2
In the article, the authors make a good argument for the need
for broadening the methods which healthcare providers use to
calculate break-even analysis. Through the different options, the
authors show different sectors where hospitals lose money they
should be gaining (Laskaris & Reagan 2013). They portray the
investment costs being higher than the costs hospitals charge for
the actual services.
The authors discuss non-financial factors that cause indirect
financial expenses like labor, technology lifespan, consumables,
and service (Laskaris & Reagan 2013). Organizations need the
evaluate the different non-financial factors that influence the
break-even points in their firms. In doing so, they can see the
different areas that lead to losses and improve on them. It is
only right to ensure that charges on services make sense when
compared to the cost of purchasing equipment. According to
the authors, affordable care affects the break-even analysis
because patients pay less for services that cost more. While
checking their financial statements, hospitals end up making
losses as opposed to profits (Laskaris & Reagan 2013).
Summary of Viewpoints
According to both authors from the two articles, implementing
some new additions to capital management makes the break-
even process make more sense. Technological changes that
bring opportunity, management's input, cash flow budgets, and
other non-economic factors influence capital investments and
decision making. As such, organizations need to focus on
methods of analyzing capital investments like payback period
on finances, the projections on profits, and the expenditure
projections.
Ethical Scandal
The Enron scandal is one that resulted in the bankruptcy of the
largest companies in the United States called Enron
Corporation. The corporation failed due to unethical behavior
from its leaders. The Enron scandal encompassed a series of
activities that resulted in financial paralysis of the goods,

4. services, and energy of Enron company. The aftermath of the
crisis led to the collapse of one of the largest accounting and
auditing companies Arthur Andersen LLP. Even more, the
scandal raised questions and awareness of accounting practices
and standards. The company faced challenges in early 2000,
where financial analysts were keen on the financial statements
of the company. The company was investigated, and the
Securities and Exchange Commission investigated the
organization's dealings with Fastow SPE's. There arose issues of
accounting malpractice that affected the stock price of the
company. The company later filed bankruptcy protection as they
suffered loss from their share price, and many of their
executives were arrested and sentenced to prison (Boddy, 2017).
Thus, the company collapsed due to accounting fraud and crude
financial statements that adversely affected its stock price.
Professionalism and ethics influence how an individual makes
certain decisions. In times of crisis, the ethics instilled in an
individual influence how accurate their choices are, and if the
decisions made are correct. Once unethical behaviors come into
play, then the wrong options are prepared to cover up existing
matters, and this leads to faulty decision making on capital
investments (Melé et al., 2017). The concepts of embezzlements
and losses come about when the individuals in an organization
who handle finances misappropriate goods and services. As
such, this leads to losses. An organization needs to ensure they
maintain codes of ethics. They can do this by frequent audits
and rotation of positions to ensure that one person does not have
unlimited power over the finances for long periods.
Conclusion
Ethics is an essential factor in an organization. Especially when
it comes to the financial aspect, it is always vital to ensure that
the individual trusted to handle such a department is ethical in
his undertakings. Capital is the only thing that drives an
organization. For the organization to stand and prosper, it is
crucial to make a proper judgment in terms of capital
investments. Ensuring book records are accurate and honest

5. ensures that the decision-makers have the right advice before
making decisions.
References
Argan, S. (2013). Expanding Credit Lines to Expand: Assessing
a Company's Viability for Expansion Financing. Retrieved from
https://guides.rasmussen.edu/library
Boddy, C. R. (2017). Enron Scandal. Encyclopedia of Business
and Professional Ethics, 1-4.
Laskaris, J., & Regan, K. (2013). The new break-even analysis:
it's time to expand the scope and assumptions of the traditional
break-even analysis. Healthcare Financial Management, 67(12),
88-96.
Melé, D., Rosanas, J. M., & Fontrodona, J. (2017). Ethics in
finance and accounting: Editorial introduction. Journal of
Business Ethics, 140(4), 609-613.
Running head: FINANCIAL ANALYSIS METHOD
1
FINANCIAL ANALYSIS METHOD
4
Financial Analysis Method
Keri King
Module 3
4/26/2020

6. Financial Analysis
Method
In an organizational setting, it is crucial to conduct a review to
assess the performance of the business. Such tasks are daunting
because they require that financial information is organized,
collected and evaluated in the right manner. Financial analysis
allows highlighting of the strengths and flaws of the finance of
a given business by critically analyzing the balance sheet and
income statements. The financial statements provide
summarized data which is analyzed and interpreted accordingly
before making vital decisions on the same. In this paper, I will
explore about the various financial analysis methods, how and
why they should be used in an organization as well as
comparing their similarities and differences.
Financial analysis methods can be categorized into three forms;
horizontal and vertical, trend and ratio analysis methods. In
horizontal and vertical financial analysis, financial information
is reported over a given sequence and time, then the results are
compared. Horizontal analysis compares business entities after
a months or months but within a fiscal year. In vertical analysis,
the financial information is analyzed in proportions where each
item in the financial record is proportional to the other. In this
case, income statements entail gross sales while the balance
sheet information entails assets.
The ratio analysis is used in calculating the comparative
measures of numbers and how they link to each other. In most
cases, the ratios calculated in a financial analysis falls within
expected sets, however, in case they indicate any potential
issues, reviewers are always on the look out to identify the
issues. The ratios can be liquidity, activity, leverage or
profitability ratios.
The trend analysis is a financial analysis method which allows
analysts to review financial statements of more than three
periods. In this case, the financial statements are assessed for
any increments in the patterns. Any potential change on the

7. financial statement can be an indication of an increase in
income or a decrease in expenses.
There exist similarities and differences in these methods of
financial analysis. In horizontal and vertical analysis, business
entities are analyzed but limited for a given period of time.
Dollar analysis as well as percentage analysis are examples of
horizontal analysis whereas vertical analysis majorly into the
balance sheet. More so, ratio analysis is important in assessing
the growth, profitability as well as solvency of a given business.
Using the financial statements for my case study, I would
propose for the use of a vertical financial analysis method.
Trinity mother Francis Health hospital has encountered issues
related to financial management. If the auditors and health care
analysis would employ a vertical approach, I am sure all the
projects will fall in place. In this case, all the items presented
on the income statement indicate the percentage gross sale.
Therefore, the vertical analysis is given by:
VAF=IS/Total sales X 100 (VAF- vertical analysis formula, IS-
income statement). In this case, the ratio outcome might be by
use of a balance sheet or an income statement. More so, based
on the finance challenges experienced at the Trinity Mother
Francis Health facility, the vertical analysis method would be
crucial because it will entail all the income statements as well
as balance sheet items recorded over a specific period of time,
hence making it easier to compare and understand the financial
proportions . That means that the two projects at hand would be
analyzed and their financial statements compared for accounting
and funding purposes.
References
Schroeder, R. G., Clark, M. W., & Cathey, J. M.
(2019). Financial accounting theory and analysis: text and
cases. John Wiley & Sons.
https://books.google.co.ke/books?hl=en&lr=&id=oVKsDwAAQ
BAJ&oi=fnd&pg=PA1&dq=methods+of+financial+analysis&ots
=1WWgmB275F&sig=0x3vM1CKdKviBEWODmBM6ae99pY&r

8. edir_esc=y
Williams, E. E., & Dobelman, J. A. (2017). Financial statement
analysis. World Scientific Book Chapters, 109-169.
https://ideas.repec.org/h/wsi/wschap/9789813224261_0004.html
1
Running Header: JOHNSONS AND JOHNSONS
JOHNSONS AND JOHNSONS 2
Module 2
Financial Statements
4/19/2020
INTRODUCTION
One of the factors that investors consider before deciding to
invest on the company on the particular company is the
performance of the company. There are number of the rations
that may be used to determine the performance of the company
but liquidity ratios are one of the rations that is commonly used.
It is used to determine if the firm is capable of paying its
currents obligations comfortably. In the event the firm is
struggling paying its obligations, investors consider such
venture risky because they may invest on them and finally firm
defaults its liabilities. Using balance sheet of the JNJ for two
years, we will compare its health status and determine stability
of the firm based in the current ratio.
BALANCE SHEET VALUES
Business latest financial statements which were available relates
to the period 2018 and 2017.
If the financials are reviewed, the current assets of the business

9. in 2018 stood at: $43,867,000 and the total current liabilities for
the period 2018 stood at: $10,991,000.
If the current ratios of previous two years of the business are
considered the business current ratio in 2018 stood at 3.99,
while the ratio in 2017 stood at 3.84, this clearly reflects that
the business has further improved the already well established
liquidity position of the business.
CASH FLOW STATEMENT VALUES
The cash flows of the business has been as follows for the
consecutive two periods. Which states all the business cash
flows related to operating, investing and financing activities for
the period.
Description
2018
2017
Operating Activities
22.2 Billion
21.06 Billion
Investing Activities
(3.17 Billion)
(14.87 Billion)
Financing Activities
(18.51 Billion)
(7.67 Billion)
Cash and Cash equivalents at end of year
18.53 Billion
17.78 Billion
The above cashflow synopsis, clearly states the business has
improved cash flows in 2018, as there has been positive
increased cash flow from the operating activities, has reduced
cashflows in the investing activities, and more over has
significantly repaid the financings, that’s the reason the
business has a lot of cash outflow in that.
The cash equivalents or the free cash flow at the end of period

10. has also improved as compared to last year.
RATIO ANALYSIS
There are three ratio analysis done over the compiled balance
sheet data, and which is based over the Current ratio, debt ratio
and debt to equity ratio of the business, which states the
business liquidity, solvency and capital structuring ratio for the
consecutive two years.
The business has massively improved the current ratio from
3.84 to 3.99 in one period.
The debt ratio of the business has improved from 0.59 to 0.58 in
2018, which states the debt is reduced from the business
structure.
The debt to Equity has slightly declined in 2018 to 1.56 from
1.61, but this is the very minor difference which the business
with such performance indicators is easily expected to come
over.
CONCLUSION
Overall Johnson and Johnson has significantly maintained its
track record of significant operational and financial
performance for the addressed periods, the business has
significantly reflected the improved financial performance, with
the increase in assets, and reduction in liabilities, moreover has
reflected improved liquidity, solvency and profitability ratios
and significant cash flows performance for the period.
The business has notable contribution to shareholders
investment for the period, and can be considered from the
investor point of view as excellent choice to invest the funds
and generate sufficient returns.
Appendix: Balance sheet for 2018 and 2017

11. References
Johnson and Johnson. (2019, June 22). Financials JNJ.
Retrieved from yahoo finance: Yahoo Finance. (2018). Johnson
& Johnson (JNJ) Retrieved June 22, 2019 from:
https://finance.yahoo.com/quote/JNJ/balance-sheet?p=JNJ
As Reported Annual Balance Sheet
Report Date12/30/201812/31/2017
CurrencyUSDUSD
Audit StatusNot Qualified2018Not Qualified2017
ConsolidatedYesChange in valueYesChange in value
ScaleThousandsThousands
Cash & cash equivalents18,107,0002%17,824,000-6%
Short-term Investments1,580,000235%472,000-98%
Net Receivables14,098,0005%13,490,00015%
Inventory8,599,000-2%8,765,0008%
Other Current Assets1,483,000225%456,000-42%
Total Current Assets43,867,0007%41,007,000-34%
Long Term Investments517,000-32%758,000-16%
Property Plant and Equipment17,035,0000%17,005,0007%
Goodwill30,453,000-5%31,906,00040%
Intangible Assets47,611,000-11%53,228,00098%
Other Assets11,305,0000%11,318,00017%
Deferred Long Term Asset Charges7,640,0008%7,105,00016%
total long-term assets114,561,000-6%121,320,00047%
Total Assets158,428,000-2%162,327,00012%
Current Liabilities
Accounts Payable7,537,0003%7,310,0006%
Short/Current Long Term Debt2,636,00076%1,499,000-12%
Other Current Liabilities818,000-56%1,854,00091%
Total Current Liabilities10,991,0003%10,663,00011%
Long Term Debt27,687,000-10%30,684,00034%
Other Liabilities34,285,000-5%35,922,00066%
long term liabilities 61972000-7%6660600050%

12. Minority Interest__
Negative Goodwill__
Total Liiabilities93,202,000-4%97,143,00037%
Stockholder's Equity
Misc. Stocks Options Warrants__
Redeemable Preferred Stock__
Preferred Stock__
Common Stock3,120,0000%3,120,0000%
Retained Earnings106,216,0004%101,793,000-8%
Treasury Stock-49,584,00011%-44,753,0003%
Capital Surplus__
Other Stockholder Equity-15,222,00015%-13,199,000-11%
Total Stockholder Equity59,752,000-1%60,160,000-15%
Total Liabilities and shareholder's equity152,954,000-
3%157,303,00011%
Net Tangible assets-18,312,000-27%-24,974,000-220%
Running head: MERGERS AND FINANCIAL ISSUES 1
MERGERS AND FINANCIAL ISSUES 5
Mergers and Financial Issues in Healthcare Organizations:
A Case of Centegra Health System
Keri King
Introduction and Topic
Mergers and Financial Issues in Healthcare Organizations: A

13. Case of Centegra Health System
Introduction
It is commonplace for healthcare facilities to face financial
issues in the course of operations. A challenge, however, arises
in the approach employed to address the issues in a bid to
render the firms to be profitable again. Reliance on experts
during the financial crisis and compliance to experts’ counsel
may lead to the recovery.
Topic and Case
The case chosen is on Centegra Health System, while the topic
is on mergers of healthcare facilities. The author provides that
mergers and acquisitions among healthcare facilities have
become rampant over time. Notably, the strategic decisions are
meant to improve the financial fortunes of healthcare facilities
involved. The anticipated enhanced financial performance does
not, however, happen all the time and firms that chose the
decision, sometimes, face financial challenges.
Financial Issues outlined in the Case
The healthcare facility mentioned previously announced plans
to merge with Northwestern Memorial Healthcare firm in 2016.
A year later, however, Centegra faced myriad multiple financial
issues. Some issues of concern in the context were the opening
of a new facility at a suburb, closure of an acute care unit, and
multiple cases of uncompensated pay. The financial issues
seemed to be beyond the capacity of the healthcare facility, the
response to which it sought the services of a financial
consultancy firm by the name Warbird. The chief executive
officer of the healthcare firm believed that the financial issues
that the firm faced were significant. To address the challenge,
the organizational head sought broad performance
improvements that touched on factors such as revenue
improvements and increased labor productivity (Dimitropoulos,
2017). Consulting efforts culminated in the formulation of
financial objectives to render the healthcare facility profitable
within two years. Indeed, the healthcare facility exhibited signs
of improvement within four months of Warbird’s operations,

14. whereby the former beat the prediction for losses in 2018 by
$10 million. The firm’s financial performance led to the
prediction of profits in 2019. It is at the point that both
Centegra and Northwestern Memorial Firm announced the
implementation of merger plans, which had seemingly been put
on hold to allow the former time to address the financial issues
that it was facing.
Perspectives of Financial Challenges
The perspective of the financial issue was that it could be
solved upon the employment of appropriate methodologies. It is
for the reason that Centegra Healthcare Facility sought services
of a reputable consultancy firm, the CEO of the former having a
list of achievements that he wanted the latter to attain. The
consultancy firm, on its part, believed that the financial crisis
could be solved with appropriate planning and organizing
endeavors (Hayward, 2016). As an illustration, the expert team
formed six teams that consisted of directors and other
employees. The teams were to form charters and establish the
objectives to make within two years. Furthermore, the
consultants believed that holding the teams accountable could
potentially enhance commitment to the course.
Relevance to Financial Management
The case presents essential insights into the financial
performance of healthcare facilities. An essential insight is that
the facilities should not rush into signing merger agreements at
a time when they experience the financial crisis as individual
financial issues may be transferred to the new establishment. In
the case, the two firms suspended the planned merger for the
duration of at least two years pending Centegra’s resolution of
the financial issues. The other insight is that healthcare
facilities should seek the services of experts whenever faced
with financial issues. In the context, conforming to experts’
counsel may potentially lead to turning around of a firm’s
financial fortunes. As an illustration, Centegra sought the
services of Warbird when faced with financial issues. In like
manner, the action team formulated by the consultants decided

15. to outsource revenue cycle management. The other observation
is that a firm should be prepared to undertake radical measures
in an attempt to improve financial performance (Ginter et al.,
2018). In the case study, the six teams arrived at the decision to
reduce staff members although it could adversely affect some
employees through the loss of jobs.
References
Dimitropoulos, P. E. (2017). Performance management in
healthcare organizations: concept and practicum. In GeNeDis
2016 (pp. 11-19). Springer, Cham.
Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). The
strategic management of health care organizations. John Wiley
& Sons.
Hayward, C. (2016). Healthcare facility planning: Thinking
strategically. Health Administration Press.