Running Head: CAPITAL DECISIONS CAPITAL DECISIONS 5 Capital Decisions Author Note This paper is being submitted on October 25, 2016, for Financial Management of Healthcare Organizations course Discuss why is it more difficult for healthcare companies to get expansion financing in the current economic situation? According to Steve (2013), healthcare companies’ expansion may be inhibited by poor results and are of liquidity. Financial institutions are afraid that liquidity of health care is tighter than other firm. It is difficult to convert goods and services in a healthcare facility to money. That means it is difficult for financial institutions to recover their investment. Financial institutions are afraid to lend their money to institutions that which has tighter liquidity. Steve (2013) says that poor results emanate from the fact that the cash flows for a healthcare facility are difficult to establish. Cases where there is no there is no fixed cash flows it becomes difficult for financial institutions to lend users. Loans are repaid on a regular basis and fixed interest. That makes it difficult for financial institutions to lend institutions that have varying cash flows for they portray vases of being unable to repay the loan. Explain the 2 major issues with the Caribbean expansion the turnaround company found and why do you think they were brought up? Product development and product improvement are two turnaround strategies to achieve profitability (Steve, 2013). Products development involves creating a new product that did not exist. A new product gives a firm an advantage over its rivals. That means it has more streams of profits. More streams of profits mean that the firm can be able to have streams of stable income to repay the loan. Steve (2013) says that product improvement involves making products better than before. Product improvement incorporates innovation. An innovative product attracts the more clients. The appeal goes beyond the existing customers to new clients. A wider market means there is an increase in cash flows. Cash flows mean that the firm can repay the loans comfortably. Describe why healthcare companies need to look beyond their banks to secure financing? The unreliable results and earnings in healthcare companies make them look beyond banks for secure financing. On the other side, the banks need a firm with stable income and revenues. The reason being that interest charges by banks are fixed and are done at a regular basis. The healthcare companies will be faced with a challenged of repaying the loans on a consistency basis over a long period. Liquidity of assets and services offered by a health facility is restricted meaning there is hardship in raising cash to repay a loan (Steve, 2013). A bank will be faced with a challenge when it wants to dispose of assets and services ...

1. Running Head: CAPITAL DECISIONS
CAPITAL DECISIONS 5
Capital Decisions
Author Note
This paper is being submitted on October 25, 2016, for
Financial Management of Healthcare Organizations course
Discuss why is it more difficult for healthcare companies to get
expansion financing in the current economic situation?
According to Steve (2013), healthcare companies’ expansion
may be inhibited by poor results and are of liquidity. Financial
institutions are afraid that liquidity of health care is tighter than
other firm. It is difficult to convert goods and services in a
healthcare facility to money. That means it is difficult for
financial institutions to recover their investment. Financial
institutions are afraid to lend their money to institutions that
which has tighter liquidity.
Steve (2013) says that poor results emanate from the fact that
the cash flows for a healthcare facility are difficult to establish.

2. Cases where there is no there is no fixed cash flows it becomes
difficult for financial institutions to lend users. Loans are repaid
on a regular basis and fixed interest. That makes it difficult for
financial institutions to lend institutions that have varying cash
flows for they portray vases of being unable to repay the loan.
Explain the 2 major issues with the Caribbean expansion the
turnaround company found and why do you think they were
brought up?
Product development and product improvement are two
turnaround strategies to achieve profitability (Steve, 2013).
Products development involves creating a new product that did
not exist. A new product gives a firm an advantage over its
rivals. That means it has more streams of profits. More streams
of profits mean that the firm can be able to have streams of
stable income to repay the loan.
Steve (2013) says that product improvement involves making
products better than before. Product improvement incorporates
innovation. An innovative product attracts the more clients. The
appeal goes beyond the existing customers to new clients. A
wider market means there is an increase in cash flows. Cash
flows mean that the firm can repay the loans comfortably.
Describe why healthcare companies need to look beyond their
banks to secure financing?
The unreliable results and earnings in healthcare companies
make them look beyond banks for secure financing. On the
other side, the banks need a firm with stable income and
revenues. The reason being that interest charges by banks are
fixed and are done at a regular basis. The healthcare companies
will be faced with a challenged of repaying the loans on a
consistency basis over a long period. Liquidity of assets and
services offered by a health facility is restricted meaning there
is hardship in raising cash to repay a loan (Steve, 2013). A bank
will be faced with a challenge when it wants to dispose of assets
and services owned by a healthcare company.
Do you think the authors make a good case for expanding
healthcare providers' methods of calculating break-even

3. analysis? Why or Why Not?
Yes, healthcare providers' present a good case of expanding
calculation of break-even analysis. The former break-even
analysis only factored in fixed costs against revenues generated.
Laskaris (2013) says that the method overlooked the variable
costs that vary within a month. In real sense balancing of the
fixed cost and revenues generated creates a false impression
that the firm is operating at break even. In real sense the
healthcare provider may spend more in terms of variable costs.
According to Laskaris (2013), Variable costs are those expenses
which increase with increase in number of clients being
attended. The numbers of healthcare employees taken on a
temporary basis are amounts to variable cost. The costs are
ignored by the firms as the firm calculates their break-even. In
the calculation of break even the healthcare providers focus
more on the fixed costs like the employees’ salaries and not
wages. Hence, there is justification for the review of the
calculation of break-even analysis.
Discuss non-financial factors do the authors believe need to be
included in break-even analysis?
Some of the non-financial factors that should be included in the
calculation of break-even analysis are volunteer reimbursement,
petty cash book allocation, gifts and waivers. Volunteers are not
employed and cannot be classified as wages or salaries
(Laskaris, 2013). The volunteer reimbursement cannot be taken
as variable or fixed cost. Petty cash book allocations cannot be
treated as fixed and variable cost. The allocations are to support
operations like tea for visitors. The costs should be treated as
mixed costs that the healthcare providers should include in its
break-even analysis. Waivers are costs that the firm incurs when
bills of clients are done away with for the clients do not have
ability to pay them. That is a cost incurred by the firm and it is
a non-financial cost that should be included in the break-even
analysis.
Explain how the Affordable Care Act affects break-even
analysis?

4. According to Laskaris (2013), healthcare providers exist first of
all to provide affordable medical care to citizens. That means at
times the pricing of the services and products in the health
sector may not meet the costs incurred. As a result a firm may
end up having more expenses as opposed to revenues collected.
The impact is that the healthcare providers may fail to finance
the operations of services. Affordable care act should step in to
finance the gap that exists where expenses are more than the
revenues obtained. The reimbursement by affordable care act
will sustain operations of the healthcare provider.
References
Laskaris, J. & Healthc Financ Manage. (2013). The new break-
even analysis. Retrieved from:
https://www.ncbi.nlm.nih.gov/m/pubmed/24380255/?_e_pi_=7%
2CPAGE_ID10%2C6744456750
Steve, A. (2013, October 08). Expanding Credit Lines in Order
to Expand: Assessing a Company’s Viability for Expansion
Financing. Retrieved from:
http://www.morrisanderson.com/company-
news/entry/httpwww.thesecuredlender-
digital.comthesecuredlenderoctober_2013artic/
Running Head: FINANCIAL ANALYSIS METHOD 1
FINANCIAL ANALYSIS METHOD
4
Financial Analysis Method
Author Note
This paper is being submitted on October 20, 2016, for
Financial Management of Healthcare Organizations course.

5. Financial Analysis Method
Define and describe various financial analysis methods. Explain
how and why each method would be used in an organization's
financial review process.
The four methods of financial analysis, we are going to be
focusing on in this assignment are horizontal, vertical analysis,
trend analysis as well as ratio analysis. Horizontal analysis is
defined as the method of financial analysis where data sets of
two different periods are compared during the analysis. These
different periods could be different months of different years.
To be able to make financial review the analyst using this
method looks at the changes in similar data between these two
periods. Vertical analysis is a method of analysis where the
analyst works with data from a single period. The analyst in this
cases reviews different figures of different entities on the
financial statement the analysis of a one-year balance sheet is
an example of vertical analysis.
Ratio analysis is a method of financial analysis that makes
use of different financial ratios in the analysis. A ratio helps to
show the relationship between two or more entities of the same
or different financial statements and the figure obtained is
compared to the budget as well as the ratio of the industry is as
to determine the financial position that an organization holds.
Examples of ratios used include the asset turnover ratio which
is an activity ratio that is measured by comparing the sales of an
organization and the total assets of an organization.
Finally, trend analysis is defined as a continuation of horizontal
analysis whereby financial statements of three of more periods
is compared (Albrecht, Stice & Stice, 2011). The analyst
making use of this method first needs to select a base year

6. which becomes the earliest year. After the selection of the base
year, the analyst the financial statement then compares with the
subsequent years.
Compares the similarities and differences among the methods
The main similarity between these financial is the fact that
they all aim at determining the financial health and the financial
condition of an organization. However, they all differ in their
approach to financial review. The horizontal analysis method
compared two different periods, by looking at similar entities in
the different reports. The vertical method of analysis involves a
single period report where different figures of different entities
are compared. The trend analysis, on the other hand, compares
similar entities on three or more reports from different years.
Finally, the ratio analysis focuses on the relationship between
two different entities of either the same or different reports
from the same period (Shim & Siegel, 2007).
Using the financial statements for your case, examine how at
least one of the methods can be used. Support your position
with the actual ratio outcome(s). Explain WHY this method
should be used over the others, based on case financial
challenges.
In the case of the reports for Johnson & Johnson Company, I
believe that the best method to make use of for the analyses is
the horizontal method which compares same entities across
reports from two time periods. This is because from the balance
sheet and income statement data provided in this case, data is
provided for two time periods that is 2014 and 2015. An
analyst, for example, can make analysis by looking at the
inventory data whereby the level of inventory was higher in
2014 than in 2015 by a margin of 131.
References
Albrecht, W., Stice, E. & Stice, J. (2011). Financial accounting.
Mason, OH: Thomson/South-Western.
Loughran, M. (2011). Financial accounting for dummies.
Hoboken, N.J: John Wiley & Sons.

7. Maynard, J. (2013). Financial accounting, reporting, and
analysis. Oxford: OXFORD UNIVERSITY PRESS.
Shim, J. & Siegel, J. (2007). Handbook of financial analysis,
forecasting, and modelling. Chicago, IL: Wolters Kluwer/CCH.
Running Head: FINANCIAL STATEMENT
1
FINANCIAL STATEMENT
4
Financial Statement
Author Note
This paper is being submitted on October 12, 2016, for
Management of Healthcare Organizations course.
Financial Statement for Johnson & Johnson for the year ended
2015
(All figures are in Dollars in Millions except ratios)
· total current assets = 60,210
· total current liabilities = 27,747
· current ratio for JNJ for previous two fiscal years
2014 = 55,744/25,031= 2.23
2013= 52,800/25,643 = 2.06
· Reports on data for the last two years
Net Cash Flows from Operating Activities = 19,279
Net Cash used by Investing Activities = (7,735)
Net Cash used by Financing Activities = (10,846)
Cash and Cash Equivalents at the end of the Years = 13,732
· Create a Balance Sheet or Statement of Cash Flows for most

8. recent two years
Johnson &Johnson Subsidiaries
Consolidated Balance sheet
Assets 2015
2014
Current assets
Cash and cash equivalents 13,732
14,523
Marketable securities 24,644
18,566
Net Account receivables trade 10,734
10,985
Inventories 8,053
8,184
Other current Assets 3,047
3,486
Total current Assets 60,210
55,744
Net property, plant and equipment 15,905
16,126
Intangible assets, net goodwill 47,393
49,054
Other non-current assets 9,903
9,434
Total assets
133,411 130,358

9. Liabilities and Shareholders’ Equity
Current liabilities
Loan and notes payable 7,004
3,538
Account payables 6,668
7,638
Accrued Liabilities 13,325
13,314
Accrued taxes on income 750
446
Total current liabilities
27,747 25,031
Long-term debts
12,857 15,122
Other long-term liabilities 21,657
20,453
Total Liabilities
62,261
60,606
Shareholders’ Equity
Common stock
3,120 3,120
Accumulated other incomes
(13,165) (10,722)
Retained earnings
103, 879 97,245

10. 93,834 89,643
Less: common stock held in treasury at cost 22,648
19,891
Total shareholders’ equity
71,150 69,752
Total liabilities and shareholders’ equity
133,411130,358
· Identify trends with an indication of if the financial statements
show a positive or negative for the organization and investors.
0
5
10
15
20
25
30
35
1st Qtr2nd Qtr3rd Qtr4th Qtr
2015
2014
Over the 2 years (2014, and 2015), Johnson & Johnson has
experienced tremendous growth in profitability and assets base.
2015 is the year that the company performed better.
References
Johnson and Johnson Services, Inc., (1997-016). Financial
Information: Quarterly Sales & Earnings.
Retrieved from, http://www.investor.jnj.com/sales-earnings.cfm
_1537773610.

11. Running head: BOSTON CHILDREN’S HOSPITAL CASE
STUDY 1
BOSTON CHILDREN’S HOSPITAL CASE STUDY 5
Boston Children’s Hospital Case Study
Author Note
This paper is being submitted on October 5, 2016, for
Financial Management of Healthcare Organizations course.
Boston Children’s Hospital
Multinational organizations have a number of advantages they
enjoy. This could include serving clients or customers from
different countries. Thus this means that all day long, people
from around the world fly to their centers in search of their
services. Such like organizations enjoy this privilege because
the kind of services they offer are a world class most efficient
kind of service thus the large number of customers who like
them. However they also face a number of challenges too. The
major challenge is the competition from other similar service
providers who will sabotage your market penetration.
Like for this case I am looking at the financial management case
study of Boston Children’s Hospital. Financial management
refers to the ability to use the money derived from the business

12. in terms of revenue and other sources in the aim of achieving
the company’s objectives. Objectives are diverse and need best
management practices to see that they are achievable. Boston
Children’s Hospital is the world’s best known children’s
hospital. It receives its patients from around the world. The
hospital has an issue related to finding out how its international
business information flows and that they had also to find ways
in which they could be handling their patients in the best way
possible such that the process takes a very short time and that
it’s the most efficient (Fowler, Levin, & Sepucha, 2011). By so
doing, this would increase their international market share.
Thus they do invite a consultancy firm called Warbird
Consulting Partners to help them in designing a tool that would
help them to obtain accurate and on time data to help the
management come up with a decision. When coming up with a
decision that would have a great impact on the revenues of a
company needs a lot of discussion and a lot of factors to base
on. These factors should however not interfere with the
organizations primary objective of being the best children
hospital. Thus this makes it a health care facility that is
committed to providing healthcare and not an income generating
organization. When operating a multinational service providing
entity like the Boston children’s hospital, as a management
committee you do not have to make cheap decisions, this can
really halt the business operations. Thus you need to make
business decisions based on proven facts that the decisions will
result in a tangible outcome. That is the reason as to why the
organization embraced some performance indicators like the
ones that related to revenue as the rest remained pending for
further refinement.
Managing the finances of an organization is a very challenging
task especially when you are looking for better solutions to
effectively compete. This is because it is faced by a lot of
uncertainty. This is to mean that there is a lot of uncertainty of
what the competitors are also doing given that they also looking
for how they too can win the larger market. Another challenge

13. about it is that brought about the globalization whereby an
organization faces a lot of competition from new companies that
are less than ten years old ("Top Ten Problems Faced by
Business | Article | BMGI", 2016). This is because there is less
understanding of the international markets and the ever
changing culture as there may be less information gathering and
analysis technique. Thus this is why the Boston children’s
hospital has gone to its drawing board and find out on how they
can improve on their information system.
Thus by collecting data of the patients from the time they are
received to the time the patients leave the facility back to their
country, this will help the management determine where in the
treatment process takes long and how can they solve it on a
friendly cost that will improve their turn around duration
(Fabozzi, F. J., Peterson, P. P., & Peterson, P. P., 2003). It will
also help the management schedule on what and how to do
purchases of equipment of the hospital in order to improve the
service delivery.
References
Fowler, F., Levin, C., & Sepucha, K. (2011). Informing and

14. Involving Patients to Improve the
Quality of Medical Decisions. Health Affairs, 30(4), 699-706.
Retrieved from, http://dx.doi.org/10.1377/hlthaff.2011.0003
Top Ten Problems Faced by Business | Article | BMGI.
(2016). Bmgi.com.
Retrieved from, https://www.bmgi.com/resources/articles/top-
ten-problems-faced-business
Fabozzi, F. J., Peterson, P. P., & Peterson, P. P.
(2003). Financial management and analysis. Hoboken: Wiley.