There are two parts to this assignment.
In this assignment, you will conduct a financial forecast for a healthcare organization’s external funding. After you conduct that forecast, you will discuss the learning concepts from the module.
ABC Company is a small manufacturer of ultrasound equipment. The Year 1 financial statements for the firm are shown below:
Balance Sheet as of December 31, Year 1 (thousands of SAR)
Total current assets
Net fixed assets
Total current liabilities
Total liabilities & equity
Income Statement for Year 1 (thousands of SAR)
Earnings before interest and taxes
Earnings before taxes
Addition to retained earnings
Suppose that in Year 2, sales only increase by 8 percent over Year 1 sales. Construct the pro forma financial statements using the constant growth method. Assume the firm operated at full capacity in Year 1. What will be the external funding requirement?
How does trend analysis help in forecasting revenue, expenses and profit on the Profit and Loss Statement for an organization? Explain whether forecasting difficulties depend on the type of healthcare organization, such as a hospital or an outpatient clinic. Additionally, explain what impact a growing population within the Kingdom of Saudi Arabia will have on the ability to forecast utilization of assets (on the Balance Sheet) effectively.
Express the financial concepts of this course such as revenue payment methods, financial risk, debt, equity, capital acquisition, financial forecasting, and the revenue cycle.
Your paper should meet the following structural requirements: