Accounting Financial Analysis Report for ABC Nursing Home

This report provides a detailed analysis of the financial statements of ABC Nursing Home, including projected revenue statement, budgeted income statement, budgeted cash flow statement, and budgeted balance sheet. It also includes a market analysis summary, location and facilities, and service description. The report concludes with recommendations for improving the provision of service.

Running head: ACCOUNTING FINANCIAL ANALYSIS REPORT
Accounting financial analysis report
Name of the university
Name of the student
Authors note

1
ACCOUNTING FINANCIAL ANALYSIS REPORT
Table of Contents
Introduction:....................................................................................................................................3
Organization summary:...................................................................................................................3
Service description:.........................................................................................................................4
Location and facilities:....................................................................................................................4
Analysis of financial statements:.....................................................................................................4
Market analysis summary:...............................................................................................................6
Conclusion:......................................................................................................................................6
References list:.................................................................................................................................7
Appendix:........................................................................................................................................9

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ACCOUNTING FINANCIAL ANALYSIS REPORT
Introduction:
ABC nursing home has the aim of establishing itself as full time assisted living residents
of Maloya city in state of Puertorico in Sri Lanka that offers medically skilled care in a self-
sustaining and respectful manner. At the second year of operations, ABC will open a sister
company that will be a non-profit organization. Establishment of nursing home comes with
financial as well non-financial objectives. Funding needs of business will begin by the
implementation of development through the years. Self worth and dignity of patients will be
promoted at ABC nursing home and striving towards providing them excellent quality of life
(Berishet al. 2016).
Organization summary:
ABC nursing home is an organization that will be established in Puertorico in Sri Lanka
with the goal of providing a respectful and holistic skilled and living nursing care to the
residents. The funding of company has been sourced by issuing shares, borrowings from some
renowned financial institutions and donations by charity organization (Fernando and Moore

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ACCOUNTING FINANCIAL ANALYSIS REPORT
2015). Such funds will be used for financing the medical equipments, assets, furnishing and start
up expenses.
Service description:
Two types of services will be offered by the nursing organization that is skilled nursing
care and assisted living. Facility of skilled nursing care will offer a more assisted and closely
supervised lifestyle for residents temporary residents of Maloya city. Such nursing will be
performed by two full times and three part times of licensed practical nurses. Elder assistant will
provide a caring and respectful assistance to patients. Nurturing care is also offered to privately
insured residents along with a medically qualified and humane treatment grabbing the prospects
of nursing home (Sagneret al. 2016).
Location and facilities:
ABC nursing home will be located in state of Puertorico in Sri Lanka. Facilities offered
by the nursing home will help patients of all aged to get intensive nursing care. Intensive care for
recovering temporary residents and post operative will be offered by skilled nursing facilities
across the courtyard along with providing setting for increased care of residents. The social
contact, location continuity and quality of care give the assurance of the fact that residents will
be surrounded in best possible healthy environment (Whertonet al. 2015).
Analysis of financial statements:
The financial statements of ABC nursing home comprise of projected revenue statement,
budgeted income statement, budgeted cash flow statement and budgeted balance sheet.
Forecasting of growth and earning of ABC Puertorico is done based the financial data of

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ACCOUNTING FINANCIAL ANALYSIS REPORT
previous year. Forecasted revenue has increased year on year resulting from increased sales
revenue from medicines and revenue from bed charges.
Forecasted revenue generated by ABC Puertorico for three consecutive year is increasing
every year from $ 92831 to $ 1067560 and further to $ 1281072. Total amount of expenses
incurred is also increasing every year.
2018 2019 2020
$280,582
$322,670
$387,204
Closing Cash Balance
There is a positive increase net cash flow from operational activities year on year as
indicated by above chart. Closing cash balance has increased in 2nd year and 3rd year
consecutively and generating money for financing their operations of sister company. Total
forecasted worth of assets is increasing as depicted in the forecasted balance sheet.
Market analysis summary:
The target population of ABC nursing homeis divided into two groups that are based on
income. Formulation of marketing strategies is dependent upon the potential residents’ families
and only potential residents of Puertorico. Overall populations that will be served by nursing
home will range from youths to old aged people who value the contributions of the efforts made

5
ACCOUNTING FINANCIAL ANALYSIS REPORT
by such health institutions (Gleason 2015). Despite the policies of initiatives and wealth in recent
years, healthcare systems in Sri Lanka require reorientation and considerable strengthening.
According to survey from World Bank of Sri Lanka, many elder people rely on health care visits
and in the current scenario; there is lack of integrated continuing care for such patients (Peters et
al. 2015). In light of this, ABC nursing home will also have a section of elder aged care
treatment.
Conclusion:
Establishment of ABC nursing home in state of Sri Lanka will help in addressing
growing social needs of population. The principal function of opening such health institution is
to protect and promote rights and welfare of people residing in that particular location. For
improving the provision of service, several initiatives will be considered by ABC nursing home.
Building capacity for care will be the key to continuous improvement is providing services to
patients. It is also required by health organization to develop guidelines for treatment and
screening of diseases. For different target groups, awareness program required by communities
should be developed for service enhancement.
References list:
Berish, D.E., Applebaum, R. and Straker, J.K., 2016. The residential long-term care role in
health care transitions. Journal of Applied Gerontology, p.0733464816677188.
Chen, J.V. and Li, F., 2015. Discussion of “Textual analysis and international financial reporting:
Large sample evidence”. Journal of Accounting and Economics, 60(2-3), pp.181-186.

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ACCOUNTING FINANCIAL ANALYSIS REPORT
Fernando, M. and Moore, G., 2015. MacIntyrean virtue ethics in business: A cross-cultural
comparison. Journal of business ethics, 132(1), pp.185-202.
Gleason, A.W., 2015. mHealth—Opportunities for transforming global health care and barriers
to adoption. Journal of Electronic Resources in Medical Libraries, 12(2), pp.114-125.
Kumara, A.S. and Samaratunge, R., 2016. Patterns and determinants of out-of-pocket health care
expenditure in Sri Lanka: evidence from household surveys. Health policy and planning, 31(8),
pp.970-983.
Peters, C., Blohm, I. and Leimeister, J.M., 2015. Anatomy of successful business models for
complex services: Insights from the telemedicine field. Journal of Management Information
Systems, 32(3), pp.75-104.
Sagner, M., Arena, R., McNeil, A., Brahmam, G.N., Hills, A.P., De Silva, H.J., Karunapema,
R.P., Wijeyaratne, C.N., Arambepola, C. and Puska, P., 2016. Creating a pro-active health care
system to combat chronic diseases in Sri Lanka: the central role of preventive medicine and
healthy lifestyle behaviors: an official policy statement of the European Society of Preventive
Medicine. Expert review of cardiovascular therapy, 14(10), pp.1107-1117.
Warren, C.S. and Jones, J., 2018. Corporate financial accounting. Cengage Learning.
Wherton, J., Sugarhood, P., Procter, R., Hinder, S. and Greenhalgh, T., 2015. Co-production in
practice: how people with assisted living needs can help design and evolve technologies and
services. Implementation Science, 10(1), p.75.

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ACCOUNTING FINANCIAL ANALYSIS REPORT
Yoosuf, A. and Premaratne, S.P., 2017. Building Sustainable Peace through Business Linkages
among Micro-Entrepreneurs: Case Studies of Micro-Enterprises in the North of Sri
Lanka. Journal of Peacebuilding & Development, 12(1), pp.34-48.
Appendix:
Projected Statement of Activities
Revenues, gains, and other support 2018 2019 2020
Membership dues ABC
$
2,70,975
$
3,11,621
$
3,73,946

8
ACCOUNTING FINANCIAL ANALYSIS REPORT
Puertorico Businesses and individuals Elite
sponsors
$
47,896
$
55,081
$
66,097
Annual conference
$
97,735
$
1,12,395
$
1,34,874
Other meetings and seminars
$
2,17,319
$
2,49,917
$
2,99,901
Consulting
$
1,21,333
$
1,39,533
$
1,67,440
Services provided to ABC National Other
$
17,064
$
19,624
$
23,549
member services
$
42,878
$
49,310
$
59,172
Realized gain on investments
$
5,971
$
6,866
$
8,240
Unrealized gain on investments
$
97,255
$
1,11,844
$
1,34,212
Dividends and interest
$
9,886
$
11,369
$
13,642
Total revenue, gains and other support
$
9,28,313
$
10,67,560
$
12,81,072
Expenses
Salaries and employee benefits
$
4,39,362
$
4,74,511
$
5,21,962
Annual conference
$
79,544
$
85,907
$
94,498
Other meetings and seminars Travel
$
47,180
$
50,954
$
56,049
Travel
$
28,160
$
30,413
$
33,454
Employee education and development
$
3,998
$
4,318
$
4,750
Total program expenses
$
5,94,245
$
6,41,785
$
7,05,964
Administrative
Salaries and employee
benefits
$
1,11,553
$
1,20,477
$
1,32,525
Professional fees
$
40,803
$
44,067
$
48,474
Office expenses
$
64,226
$
69,365
$
76,301
Liability insurance
$
1,274
$
1,376
$
1,513
Occupancy
$
48,328
$
52,195
$
57,414
Total administrative expenses $ $ $

9
ACCOUNTING FINANCIAL ANALYSIS REPORT
2,66,184 2,87,479 3,16,227
Total Expenses
$
8,60,430
$
9,29,264
$
10,22,191
Change in Unrestricted
net assets
$
67,883
$
1,38,296
$
2,58,881
ABC PUERTORICO
PROJECTED STATEMENTS OF CASH FLOWS
Cash flows from operating activities 2018 2019 2020
Change in net assets
$
33,579
$
38,615
$
46,338
Adjustments to reconcile change in net assets to
net cash provided by operating activities
Depreciation and amortization
$
999
$
1,149
$
1,378
Realized gains on sale of investments
$ -
97,255
$ -
1,11,844
$ -
1,34,212
Unrealized gains on investments
$ -
9,886
$ -
11,369
$ -
13,642
(Increase) Decrease in operating assets
$
-
$
-
Accounts receivable
$ -
1,650
$ -
1,898
$ -
2,277
Withholding tax receivable
$ -
24,298
$ -
27,943
$ -
33,531
Prepaid expenses and other current assets
$ -
19,169
$ -
22,044
$ -
26,453
Increase (Decrease) in operating liabilities
Accounts payable
$ -
47,744
$ -
54,906
$ -
65,887
Accrued expenses
$ -
23,880
$ -
27,462
$ -
32,954
Due to ABC National
$ -
2,16,134
$ -
2,48,554
$ -
2,98,264
Deferred lease liability
$ -
1,095
$ -
1,259
$ -
1,510
Deferred revenue
$
1,02,869
$
1,18,299
$
1,41,959
Total adjustments to net income
$ -
3,37,243
$ -
3,87,829
$ -
4,65,395
Net cash used by operating activities
$ -
3,03,664
$ -
3,49,214
$ -
4,19,057

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ACCOUNTING FINANCIAL ANALYSIS REPORT
Cash flows from investing activities
Purchases of property and equipment
$ -
5,473
$ -
6,293
$ -
7,552
Proceeds from sales of investments
$
4,37,324
$
5,02,922
$
6,03,507
Purchases of investments
$ -
1,87,483
$ -
2,15,605
$ -
2,58,726
Net Cash Provided by Investment Activities
$
2,44,368
$
2,81,024
$
3,37,228
Cash flows from financing activities
Payments on capital leases
$ -
74
$ -
85
$ -
102
Net Cash used by Financing activities
$ -
74
$ -
85
$ -
102
Net decrease in cash and cash equivalents
$ -
59,222
$ -
68,105
$ -
81,726
Cash and cash equivalents at beginning of
the year
$
3,39,804
$
3,90,775
$
4,68,930
Cash and cash equivalents at end of the year $
2,80,582
$
3,22,670
$
3,87,204
ABC PUERTORICO STATEMENTS
OF FINANCIAL POSITION JUNE 30, 2017
Assets 2018 2019 2020
Current Assets
Cash and Cash Equivalent
$
2,80,582
$
3,22,670
$
3,87,204
Withholding Tax Receivable
$
1,800
$
1,980
$
2,277
Prepaid expenses and other current assets
$
24,500
$
28,175
$
32,401
Total Current Assets
$
3,06,882
$
3,52,825
$
4,21,882
Investments
$
4,25,200
$
4,88,980
$
5,86,776
Property Plant and Equipment
Property and Equipment
$
20,250
$
15,188
$
11,391
Less: Accumulated depreciation and
amortization
$
5,063
$
3,797
$
2,848

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ACCOUNTING FINANCIAL ANALYSIS REPORT
Property, Plant and equipment, net
$
15,188
$
11,391
$
8,543
$
4,65,700
$
5,19,355
$
6,09,557
Total Assets
$
7,72,582
$
8,72,180
$
10,31,439
Liabilities and Net Assets
Current Liabilities
Accounts Payable
$
65,946
$
75,838
$
91,005
Accrued expenses
$
30,526
$
35,105
$
42,126
Due to ABC National
$
11,250
$
12,938
$
15,525
Capital lease payable, current portion
$
1,052
$
1,210
$
1,452
Deferred lease liability
$
5,154
$
5,927
$
7,113
Deferred revenue
$
2,05,585
$
2,36,423
$
2,83,707
Total Current Liabilities
$
3,19,513
$
3,67,440
$
4,40,928
Long-term Liabilities
Capital lease payable, net of current portion
$
6,548
$
7,530
$
9,036
Total Liabilities
$
3,26,061
$
3,74,970
$
4,49,964
Net Assets
Unrestricted
Balance beginning of year $
4,52,356
$
5,20,209
$
6,24,251
Change in net assets $
5,835
$
23,000
$
42,776
Balance end of year $
4,46,521
$
4,97,210
$
5,81,475
Total liabilities and net assets $
7,72,582
$
8,72,180
$
10,31,439