Milestone Four.docx - 1 Alexandra Sowers Southern New...

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1Alexandra SowersSouthern New Hampshire University HCM-400Milestone 4February 13, 2019
2Financial & Budgetary ConsiderationsFinancial StatementsWhen it comes to understanding financial information and the process of choosing between different investment opportunities is important when it comes to managers making decisions. Having the ability to assign resources to certain departments can depend on the availability of reliable and timely information provided by a business’ risk, financial position, and profitability that can lead to different strategy recommendations. The capital budget proposalwill use several aspects from the financial statements of telehealth monitoring which include the income statement, balance sheet, and the company’s flow statement. Once an understanding of Amedisys’ financial position is discovered it then makes it easier to determine if the proposal should be continued to be rewritten.An income statement which is also known as the profit and loss statement or statement ofrevenue and expense, this statement is used in measuring an organization’s performance financially (The Income Statement, n.d.). Income statements can provide information that is for aspecific time frame instead of specific point in time much like a balance sheet. The financial performance is measured by how well the organization acquires expenses and revenue by using operating and non-operating projects (The Income Statement, n.d.). The income statement also shows a net profit or the loss that has been sustained for that specific time frame. These statements generally give information from a few years so that this information can be compared using a formulate ratio similar to ROE or return on equity, ROA or return on assets, gross profit, and operating profit. An income statement is divided into different parts one containing operatingprofits while the other contains non-operating profit (The Income Statement, n.d.). The non-operating section has information regarding revenue and expenses that are not connected to other
3operations (The Income Statement, n.d.). The operating section holds information on “revenues and expenses that are direct result” of business operations (The Income Statement, n.d.). When it comes to Amedisys, they have a revenue that is created from services that are provided to seniorsor other in-home patients. Expenses that could incur for those services are employee paychecks, mileage, and supplies needed for visits.The balance sheet can “provide information about what assets the company owns, their liabilities, and the value of the business to stockholders as of a certain date (The Balance Sheet, n.d.). The categories listed above are made up of even smaller sections that can break down into more specifics for the finances. Assets are things that organizations own that are of value and be added to a balance sheet according to its ease of liquidity. Then you have liabilities those are

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