My own Analysis from the Financial Statements of the Neighborhood Hospital Additional
You need to do volunteer be employed by a local hospital auxiliary. A healthcare facility supplies the share to be bought at its present shop. Although the hospital is known as a not for income organization, the aim of the gift idea shop is always to break even or perhaps earn a profit.
Unfortunately, the gift store has been losing money for the hospital for quite some time. Because you have now possess graduated with an Associates degree coming from Kaplan University or college, the Gift Shop Director has asked you to examine the economic statements within the past five years to see if you are able to suggest virtually any ways to increase the bottom line.
In your examination, you discover the next six " Red Flags. "
Red Flag 1
Although the revenue in snack food lessens every year, the expense of goods marketed increases annually.
Red Flag 2
A few of the items in the gift shop appear dirty and " shopworn. вЂќ
Red Flag three or more
In your examination of the financial claims, you see that there is a mortgage on the catalogs. The average balance of the mortgage is $14, 000 at the outset of the prior yr, and $10,50, 000 towards the end of the prior year. The interest expense for the income statement for the entire year is $1, 560.
Red light 4
The balance piece shows that the checking account features over 20 dollars, 000 in it, as well as the account does not pay fascination. The surprise shop would not have an interest bearing account.
Red light 5
You notice that in the floral cooler there are many flower arrangements that happen to be looking as though they are perishing.
Red Flag six
There are five personnel who will be paid, one particular fulltime and the rest will be part-time. The fulltime employee purchases the stock, which is to be sold again. She places purchase instructions, receives the products, and pays off vendors. Her sister is also a or perhaps employee.
Treat all 6 of the Warning and apply them to the task given to you to see if you may improve the bottom line. Tell why each red flag presents any problem for the surprise shop and tell how a red flag could possibly be causing the gift shop to loose...