Write a research paper explaining the three financial reports and how they are used in the medical field.This competency assessment assesses the following Outcome(s): HS440-3: Analyze major financial reports used in healthcare organizations to inform decision making. Instructions: Using Microsoft Excel, calculate the hospital’s Collection Period ratio, Average Collection Period ratio, Operating Margin ratio, Inventory Turnover Ratio using the Balance Sheet and Statement of Operations provided. Compare our hospital’s ratio numbers to the most recent Optum Median hospital numbers (provided). For each ratio, is our hospital better or worse than the median hospital? Lastly, explain what purpose is served by conducting the ratio analysis and comparing your results to the industry average? 2020 balance sheet showing assets and liabilities statement of operations showing revenues, expenses, and changes in net assets Optum 2021 Median Hospital Financial Ratios Average Collection Period 47.5 Operating Margin 0.46% Inventory Turnover Ratio 59.53 Details: Use Excel or Word to organize your answers. Formulas for the required ratios are as follows: Collection Period Ratio collection period ratio formula: net receivables over net patient service revenue divided by 365 Operating Margin operating margin formula: operating income divided by total operating revenue all multiplied by 100 Inventory Turnover Ratio inventory turnover ratio formula: total operating revenue plus other income divided by inventory Organize your table like the one in the example below, calculate your ratios and place your answers in the Current Ratio column, and state whether your hospital ratio is better than the Optum 2021 Median ratio. Example: optum ratio example answer in excel format Name your file LastName_Module_3_Assignment Submit your assignment to the Assignment Dropbox. Note: If you are having trouble viewing the images for the assignment, please refer to the Competency Assessment document. Minimum Submission Requirements Proper notification of any resubmission, repurposing, or reworking of prior work per the Purdue Global Student Coursework Resubmission, Repurposing, and Reworking Policy Resource. This assessment should be a Microsoft Excel or Word. This assessment should calculate the hospital’s Collection Period ratio, Average Collection Period ratio, Operating Margin ratio, Inventory Turnover Ratio using the Balance Sheet and Statement of Operations provided. This assessment should compare the hospital’s ratio numbers to the most recent Optum Median hospital numbers (provided). This assessment should identify if the hospital better or worse than the median hospital. This assessment should explain what purpose is served by conducting the ratio analysis and comparing your results to the industry average. Your submission must be written in Standard English and demonstrate exceptional content, organization, style, and grammar and mechanics.
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