Solved by verified expert:The next part of your project will require you to navigate to the website of Johnson & Johnson (https://www.jnj.com/) and locate the most recent annual reports. You will use the annual reports to create financial statements. Annual reports for JNJ are usually located in a section titled Investor Relations, Investor Information, etc.Use the annual report to find the total current assets and total current liabilities.Compute the current ratio for JNJ for previous two fiscal yearsReview reports on data for the last two years.Net Cash Flows from Operating ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Financing ActivitiesCash and Cash Equivalents at the end of the YearsCreate a Balance Sheet or Statement of Cash Flows for most recent two yearsIdentify trends with an indication of if the financial statements show a positive or negative for the organization and investors.Use Microsoft Excel to create at least three (3) graphical displays to show the trends (i.e., bar graph, pivot table, histogram, etc). You should include a copy of your graphs in the body of your report.Discuss which year Johnson & Johnson appear to be in a stronger financial position and big differences between the 2 years (Keep in mind that dollar amounts in ( ) are negative or cash outflows).Imagine that this information represents information for your project case. Incorporate or reference financial information in your case to support the report. (see attached)Summarize your responses in a report using titles from the assignment requirements (i.e., assets and liabilities, cash flows/balance sheet, trends, financial position). 3 PAGES, APA WITH A REFERENCE PAGE
tjones_module_1_04052018.docx
Unformatted Attachment Preview
Running Head: FINANCIAL MANAGEMENT
Trinity Mother Frances Health System
Financial Management of Healthcare Organization
Tena Jones
Rasmussen College
April 5, 2018
1
FINANCIAL MANAGEMENT
2
The selected case in this analysis is the Trinity Mother Frances Health System, Tyler,
Texas. The case features Trinity Mother Frances Health System in need of financial leadership
after the retirement of its long-term Chief Finance Officer. The Trinity Health Center had
embarked on the mission of building a heart hospital and installation of the EPIC electronic
information although the company was experiencing days of cash-on-hand financial strain at the
same time the company was not prepared to enter the bond market due to lack of information on
how to go about bond financing.
From the case study, Trinity was undergoing a period of financial strain as their long-term
chief finance officer had retired at the same time the company lacked the necessary information
regarding securing finances through bond financing. Although the company was experiencing a
period of financial strain, it had embarked on the mission of constructing a heart hospital and
installation of EPIC electronic information. These two projects required a lot of money, and this
could prompt Trinity to source for other alternative financing options to finance the two projects.
Effective management of a company’s finances is dependent on proper leadership and
management within the organization (Brigham & Ehrhardt, 2013). From the case study, Trinity
Mother Frances Health System had problems regarding sourcing for funds through bond market
due to lack of knowledge regarding bond financing as well as lack of proper financial leadership
since the company CFO had retired and his replacement had not been done. Warbird provided
customized healthcare finance team that included an interim CFO that helped the Trinity Mother
Frances Health System move forward with its key financial activities. With the intervention of
Warbird consulting partners, Trinity Mother Frances Health System was able to source bond
financing at attractive rates, establish a department of internal audit to solve internal financial
difficulties and issues, develop a robust investment policies including new asset allocation for
FINANCIAL MANAGEMENT
3
corporate and retirement funds as well as establishment of a system to improve cash management
within the facility.
The intervention by Warbird consulting partners also helped in restructuring bond portfolio
with reduced interest expense and lower risk. Moreover, Warbird consulting partners harnessed
the process to review and standardize physician incentive compensation program. It is imperative
to understand that a clear structure of managing healthcare finances is necessary to establish a
proper guideline on how the finances of the healthcare are utilized. Through a consultancy
program, a healthcare organization can be able to properly manage its finances based on the
guidance offered by the consultancy firm.
The basic activities involved in financial management in healthcare organizations involve
financial evaluation and planning, making long-term investment decisions, working capital
management, and financial risk management (Zietlow, Hankin, Seidner & O’Brien, 2018). These
activities are critical not only to healthcare organizations but also other organization that handles
cash and cash equivalents. Many times, organizations face financial difficulties like in the case of
Trinity whereby the organization is not sure of how to go about bond financing to help in financing
their long-term project. The aspect of financial management thus comes in to help resolve the
financial dilemma by providing relevant information regarding other alternative sources of finance
for the organization. Because Trinity had no proper financial leadership, engaging a consultancy
firm was a noble idea as the firm was able to grant the company the necessary expertise to help
solve the financial dilemma the company was facing. Healthcare organization should develop
proper financial management guidelines backed by adequate leadership to ensure their success in
the market (Finkler et al., 2016).
4
FINANCIAL MANAGEMENT
References
Brigham, E. F., & Ehrhardt, M. C. (2013). Financial management: Theory & practice. Cengage
Learning.
Finkler, S. A., Smith, D. L., Calabrese, T. D., & Purtell, R. M. (2016). Financial management for
public, health, and not-for-profit organizations. CQ Press.
Zietlow, J., Hankin, J. A., Seidner, A., & O’Brien, T. (2018). Financial management for nonprofit
organizations: Policies and practices. John Wiley & Sons.
…
Purchase answer to see full
attachment
