Description
Please follow the rubric in other to acheive this assignment. Also, use the apa format for referencing
FM007: Analyze Financial Data: Make recommendations for organizational decisions based on analyses of financial data.
Assessment Rubric
0
Not Present
1
Needs Improvement
2
Meets Expectations
3
Exceeds Expectations
Part I: Analyze Organizational Financial Data
Sub-Competency 1: Analyze financial and operational data to make effective management decisions.
Learning Objective 1.1:
Calculate and interpret
net sales, operating
expenses, operating
income, and net income
data to determine
significance of trend
result.
Calculation and
interpretation of net
sales, operating expenses,
operating income, and net
income data to determine
significance of trend
result is missing.
Calculation of the 5-year
net sales, operating
expenses, operating
income, and net income is
incomplete or inaccurate.
Response accurately
calculates the 5-year net
sales, operating expenses,
operating income, and net
income.
Interpretation of the data
and/or the explanation of
the significance of the
trend result is inaccurate,
unclear, or incomplete.
Response accurately
interprets the data and
effectively uses it to
explain the significance of
the trend result.
Learning Objective 1.2:
Calculate and interpret
profit margin, asset
turnover, return on
assets, and return on net
worth data to assess a
company’s profitability.
Calculation and
interpretation of profit
margin, asset turnover,
return on assets, and
return on net worth data
to assess a company’s
profitability is missing.
Calculation of the 5-year
total profit margin, asset
turnover, return on
assets, and/or return on
net worth is incomplete
or inaccurate.
Response accurately
calculates 5-year total
profit margin, asset
turnover, return on
assets, and return on net
worth.
Interpretation of the data
and/or the explanation of
the company’s
profitability is inaccurate,
unclear, or incomplete.
Calculation of the 5-year
Response accurately
interprets the data and
uses it to assess the
company’s profitability.
Learning Objective 1.3:
©2015 Walden University
Calculation and
Response accurately
Demonstrates the same
level of achievement as
“2,” plus the following:
Explanation of the
significance of the trend
results includes detailed
examples or illustrative
graphics.
Demonstrates the same
level of achievement as
“2,” plus the following:
Response provides
additional context for
these calculations by
comparing them to other
healthcare organizations
or figures for the industry.
Demonstrates the same
1
Calculate and interpret
current ratio, day’s cash
on hand, and working
capital data to evaluate a
company’s liquidity.
Learning Objective 1.4:
Calculate debt ratio and
times interest earned
ratio to evaluate a
company’s long-term
solvency.
0
Not Present
interpretation of current
ratio, day’s cash on hand,
and working capital data
to evaluate a company’s
liquidity is missing.
Calculation and
interpretations of debt
ratio and times interest
earned ratio to evaluate a
company’s long-term
solvency is missing.
Learning Objective 1.5:
The DuPont analysis is
Conduct a DuPont analysis missing.
to determine the
organization’s DuPont
characteristics and trends
across an analysis period.
1
Needs Improvement
current ratio, day’s cash
on hand, and/or working
capital is inaccurate or
incomplete.
2
Meets Expectations
calculates the 5-year
current ratio, day’s cash
on hand, and working
capital.
Interpretation of
Calculations to evaluate
the company’s liquidity is
inaccurate or unclear.
Response accurately and
clearly interprets the data
in order to explain the
company’s liquidity.
Calculation of the 5-year
debt ratio and times
interest earned ratio is
inaccurate or incomplete.
Response accurately
calculates the 5-year debt
ratio and times interest
earned ratio.
Interpretation of
Calculations to evaluate
the company’s long-term
solvency is inaccurate or
incomplete.
Response accurately and
clearly interprets the data
in order to explain the
company’s long term
solvency.
The DuPont analysis for
each of the five most
recent years is inaccurate,
or the analysis is only
provided for some of the
five most recent years.
Response accurately
applies a DuPont analysis
for each of the five most
recent years.
Interpretation of the
company’s DuPont
analysis characteristics
and trends is inaccurate
©2015 Walden University
Response accurately and
clearly interprets the
company’s individual
DuPont characteristics
and trends.
3
Exceeds Expectations
level of achievement as
“2,” plus the following:
Response provides
additional context for
these calculations by
comparing them to other
healthcare organizations
or figures for the industry.
Demonstrates the same
level of achievement as
“2,” plus the following:
Response provides
additional context for
these calculations, by
comparing them to other
healthcare organizations
or figures for the industry.
Demonstrates the same
level of achievement as
“2,” plus the following:
Response provides
additional context for
these calculations, by
comparing them to other
healthcare organizations
or figures for the industry.
2
0
Not Present
Learning Objective 1.6:
Make recommendations
for management decisions
based on evaluation of
financial information.
Recommendation for use
of financial data to make
effective decisions is
missing.
1
Needs Improvement
or unclear.
Recommendation for or
against purchasing an
organization is unclear.
Rationale supporting the
recommendation for or
against the purchase is
unclear or incomplete, or
the data cited in the
rationale is irrelevant or
unclear.
2
Meets Expectations
Response includes a
recommendation for or
against purchasing an
organization is based on
the operational and
financial analysis of the
organization up for sale.
Response includes a clear
and logical rationale
supporting the
recommendation and
data is used to support
the recommendation.
3
Exceeds Expectations
Demonstrates the same
level of achievement as
“2,” plus the following:
Response provides
additional rationale for
this recommendation by
comparing this company’s
data to industry
benchmarks.
Part II: Conduct an Operating Indicator Evaluation
Sub-Competency 2: Make effective recommendations based on an operative indicator evaluation.
Learning Objective 2.1:
Apply mathematical
principles to accurately
calculate cash inflows and
outflows.
Application of
mathematical principles
to accurately calculate
cash inflows and outflows
is missing.
Calculation of cash inflows
and cash outflows is
inaccurate or incomplete,
or response is not
relevant to the case
presented.
Response accurately
calculates the cash inflows
and outflows for each
year in the case
presented.
Learning Objective 2.2:
Apply strategies to
accurately calculate the
Application of strategies
to accurately calculate the
profitability of a capital
Calculations of the NPV,
IRR, MIRR, payback
period, and discounted
Response accurately
calculates the NPV, IRR,
MIRR, payback period,
©2015 Walden University
Demonstrates the same
level of achievement as
“2,” plus the following:
Response provides
additional context for
these calculations, by
commenting on how they
compare to other
healthcare organizations
or figures for the industry.
Demonstrates the same
level of achievement as
“2,” plus the following:
3
profitability of a capital
project.
Learning Objective 2.3:
Make recommendations
for management decisions
based on operative
indicator evaluation.
0
Not Present
project is missing.
Recommendations for
management decisions
based on an operative
indicator evaluation are
missing.
1
Needs Improvement
payback period of capital
project are incomplete or
inaccurate.
2
Meets Expectations
and discounted payback
period of a capital project.
Recommendation as to
whether the project in the
case presented is
acceptable is vague.
Response states a clear
recommendation as to
whether the project in the
case presented is
acceptable.
Rationale is given to
support the
recommendation does
not include information
(or includes
misinformation) from
calculations, and/or it
does not highlight (or
erroneously highlights)
the costs and benefits of
implementing the project,
and/or it does not take
into consideration (or
misinterprets) the
corporate policy for
accepting the capital
project.
©2015 Walden University
Clear and logical rationale
is given to support the
recommendation.
3
Exceeds Expectations
Response provides
additional context for
these calculations, by
commenting on how they
compare to other
healthcare organizations
or figures for the industry.
Demonstrates the same
level of achievement as
“2,” plus the following:
Rationale includes a
compelling argument for
the recommendation
based on the overall
evaluation.
Rationale includes
information from
calculations to support
the recommendation.
Rationale highlights the
costs and benefits of
implementing the project.
Rationale takes into
consideration the
corporate policy for
accepting the capital
project.
4
0
Not Present
1
Needs Improvement
2
Meets Expectations
3
Exceeds Expectations
PS003: Technology: Use technology tools effectively.
Learning Objective
PS 3.2:
Apply the features of
Excel to communicate
information effectively.
Excel spreadsheet is
incomplete or missing.
Excel spreadsheet has
some formatting issues
and is difficult to
interpret.
Excel spreadsheet has
effective formatting, and
the data can be easily
read and interpreted.
Excel spreadsheet
includes format and
design elements that
bring enhanced clarity to
the spreadsheet.
Calculation of the
hospital’s original profits
and related projections
are incomplete,
inaccurate, or missing, or
are not relevant to the
case presented.
Response includes
complete and accurate
calculations of the
hospital’s original profits
and related projections
for the case presented.
Demonstrates the same
level of achievement as
“2,” plus the following:
Part III: Conduct a Budgeting Evaluation
Sub-Competency 3: Conduct a budgeting evaluation.
Learning Objective 3.1:
Calculate a hospital’s
profit forecast and related
projections.
Calculation of a hospital’s
profit forecast and related
projections is missing.
Explanations of
calculations are unclear or
missing.
Learning Objective 3.2:
Identify inpatient service
lines that are over budget
and those that are over
budget after accounting
for workload increases.
©2015 Walden University
Identification of inpatient
service lines that are over
budget and which
inpatient service lines are
over budget after
accounting for workload
increases is missing and
not provided.
Response calculations of
inpatient service lines that
are over budget and/or
inpatient service lines that
are over budget after
accounting for workload
increases, are incomplete
or inaccurate, and/or are
Response includes clear
explanations of each
calculation.
Response includes
accurate and complete
calculations of inpatient
service lines that are over
budget and inpatient
service lines that are over
budget after accounting
for workload increases for
In addition to making a
correct projections,
response effectively
consider all relevant
factors such as taxes,
depreciation, etc. that
need to be considered in
deciding the hospital’s
profit projection.
Demonstrates the same
level of achievement as
“2,” plus the following:
Response includes a chart
or graph to support the
explanation of
Calculations.
5
0
Not Present
Learning Objective 3.3:
Recommend actions to be
taken to improve
performance in a fee-forservice hospital.
Learning Objective 3.4:
Recommend actions to be
taken for a capitated
hospital.
Recommendation of
actions to be taken to
improve performance (at
the mid-year point) in a
fee-for-service hospital is
missing.
Identification of the two
actions that should be
taken for a capitated
hospital is missing and not
provided.
1
Needs Improvement
not relevant to the case
presented.
Explanations of
Calculations are unclear
or missing.
Recommendation of
actions that should be
taken at the mid-year
point for a fee-for-service
hospital lack detail or are
not logical.
Response is not relevant
to the case presented in
terms of focusing on the
problem areas and/or
identifying those who
might provide ideas for
“best practices” based on
their performance.
Response identifies only
one action that should be
taken at the mid-year
point for the fee-forservice hospital in the
case presented, or two
actions are identified but
are not logical or related
to the case presented.
Actions do not take into
©2015 Walden University
2
Meets Expectations
the case presented.
3
Exceeds Expectations
A clear explanation is
provides for each
calculation.
Response clearly details
recommendations for two
logical actions that should
be taken at the mid-year
point for a fee-for-service
hospital.
Response is relevant to
the case presented,
focusing on the problem
areas and identifying
those who might provide
ideas for “best practices”
based on their
performance.
Clearly details
recommendations for two
logical actions that should
be taken at the mid-year
point for the fee-forservice hospital in the
case presented.
Actions take into
consideration the
expectations of a
Demonstrates the same
level of achievement as
“2,” plus the following:
Response mentions both
focus of the attention,
and who might provide
ideas for “best practices”
based on desired
performance.
Demonstrates the same
level of achievement as
“2,” plus the following:
Response identifies more
than two clear and logical
actions that should be
taken at the mid-year
point for the fee-forservice hospital in the
case presented.
6
0
Not Present
1
Needs Improvement
consideration the
expectations of a
capitated hospital.
2
Meets Expectations
capitated hospital.
3
Exceeds Expectations
PS001: Written Communication: Demonstrate graduate-level writing skills.
Learning Objective
PS 1.1:
Use proper grammar,
spelling, and mechanics.
Multiple major and minor
errors in grammar,
spelling, and/or
mechanics are highly
distracting and seriously
impact readability.
Multiple minor errors in
grammar, spelling, and/or
mechanics are distracting
and negatively impact
readability.
Learning Objective
PS 1.2:
Organize writing to
enhance clarity.
Writing is poorly
organized and incoherent.
Introductions, transitions,
and conclusions are
missing or inappropriate.
Writing is loosely
organized. Limited use of
introductions, transitions,
and conclusions provides
partial continuity.
Learning Objective
PS 1.3:
Apply APA style to written
work.
APA conventions are not
applied.
Learning Objective
Vocabulary and tone are
©2015 Walden University
Writing reflects
competent use of
standard edited American
English.
Errors in grammar,
spelling, and/or
mechanics do not
negatively impact
readability.
Writing is generally wellorganized. Introductions,
transitions, and
conclusions provide
continuity and a logical
progression of ideas.
Grammar, spelling, and
mechanics reflect a high
level of accuracy in
standard American
English and enhance
readability.
Writing is consistently
well-organized.
Introductions, transitions,
and conclusions are used
effectively to enhance
clarity, cohesion, and
flow.
APA conventions for
APA conventions for
APA conventions for
attribution of sources,
attribution of sources,
attribution of sources,
structure, formatting, etc., structure, formatting, etc., structure, formatting, etc.,
are applied inconsistently. are generally applied
are applied correctly and
correctly in most
consistently throughout
instances. Sources are
the paper. Sources are
generally cited
consistently cited
appropriately and
appropriately and
accurately.
accurately.
Vocabulary and tone have Vocabulary and tone are
Vocabulary and tone are
7
PS 1.4:
Use appropriate
vocabulary and tone for
the audience and
purpose.
0
Not Present
inappropriate and
negatively impact clarity
of concepts to be
conveyed.
1
Needs Improvement
limited relevance to the
audience.
2
Meets Expectations
generally appropriate for
the audience and support
communication of key
concepts.
3
Exceeds Expectations
consistently tailored to
the audience and
effectively and directly
support communication
of key concepts.
PS005: Critical Thinking and Problem Solving: Use critical-thinking and problem-solving skills to analyze professional issues and inform best
practice.
Learning Objective
PS 5.1:
Analyze assumptions and
fallacies.
Analysis of assumptions is
missing.
Learning Objective
PS 5.2:
Generate reasonable and
appropriate assumptions.
Assumptions are missing.
Learning Objective
PS 5.3:
Assess multiple
perspectives and
alternatives.
Learning Objective
PS 5.4:
Assessment of multiple
perspectives is missing.
©2015 Walden University
Problems and solutions
are not identified.
Response is weak in
assessing the
reasonableness of
assumptions in a given
argument.
Response generally
assesses the
reasonableness of
assumptions in a given
argument.
Response clearly and
comprehensively assesses
the reasonableness of
assumptions in a given
argument.
Response does not
adequately identify and
discuss the implications of
fallacies or logical
weaknesses in a given
argument.
Response does not
adequately present and
discuss key assumptions
in an original argument.
Response identifies and
discusses the implications
of fallacies and/or logical
weaknesses in a given
argument.
Response provides a
detailed and compelling
analysis of implications of
fallacies and logical
weaknesses in a given
argument.
Response justifies the
reasonableness and need
for assumptions in an
original argument.
Response does not
identify nor adequately
consider multiple
perspectives or
alternatives.
Response presents
solutions, but they are
Response identifies and
considers multiple
perspectives and
alternatives.
Response justifies
selection of chosen
alternative relative to
others.
Response presents
solutions that are
Response presents
compelling supporting
Response presents and
discusses key assumptions
in an original argument.
8
0
Not Present
Use problem-solving skills.
©2015 Walden University
1
Needs Improvement
ineffective in addressing
the specific problem.
2
Meets Expectations
practical and work in
addressing the specific
problem.
3
Exceeds Expectations
arguments for proposed
solutions.
9
Overview
In this Assessment, you will use information from several case studies and
other documents to demonstrate your ability to make recommendations for
organizational decisions based on analyses of financial data.
This Assessment requires submission of two (2) files. Save your files as
follows:
•
•
Save the written sections of Parts I, II, and III
as FM007_firstinitial_lastname (for example, FM007_J_Smith).
Save the spreadsheet for Part II
as FM007_spreadsheet_firstinitial_lastname.
Instructions
Before submitting your Assessment, carefully review the rubric. This is the
same rubric the assessor will use to evaluate your submission and it provides
detailed criteria describing how to achieve or master the Competency. Many
students find that understanding the requirements of the Assessment and the
rubric criteria help them direct their focus and use their time most productively.
Rubric
This assessment has three-parts. Click each of the items below to complete
this assessment.
Part I: Analyze Organizational Financial Data
You are an administrator at Arizona Health Services (AHS), a large hospital
system. You have been asked to assist in evaluating the financial feasibility of
purchasing Jiranna Healthcare, a managed care organization in the San Jose
area. For this part of the Performance Task, you will conduct a 5-year analysis
of Jiranna Healthcare’s operational and financial data in order to determine
whether or not it is an attractive acquisition. Refer to “Jiranna Finances” for
financial statements to analyze.
Prepare a 2- to 3-page financial analysis. The focus must be on the content and
the depth of your analysis. Unless otherwise indicated, a 5-year trend
analysis—including the most recent year of available data—is expected.
Complete your analysis as follows:
•
•
•
•
•
•
Calculate the 5-year net sales, operating expenses, operating income, and
net income of Jiranna Healthcare. Once calculations are complete, interpret
the resulting data and explain the significance of the trend results.
Calculate the 5-year total profit margin, asset turnover, return on assets, and
return on net worth. Once calculations are complete, interpret the resulting
data and determine the company’s profitability.
Calculate the 5-year current ratio, day’s cash on hand, and working capital.
Once calculations are complete, interpret the resulting data and assess the
company’s liquidity.
Calculate the 5-year debt ratio and times interest earned ratio. Once
calculations are complete, interpret the resulting data and explain the
company’s long term solvency.
Complete a DuPont analysis for each of the five most recent years. Once
calculations are complete, interpret the resulting data and determine the
company’s individual DuPont characteristics (e.g., total margin, total asset
turnover & equity multiplier) and trends across the analysis period.
Ultimately a decision has to be made. Would you recommend purchasing
Jiranna Healthcare? Why?
Part II: Case Study #2
For the next part of this Performance Task, you are expected to complete a
number of calculations, and then interpret the numbers to provide
recommendations based on these analyses. It is essential both to show your
work and calculations, and to demonstrate how these calculations support your
conclusions. Be sure to explain your reasoning. You will be assessed on the
accuracy of your quantitative analyses and the quality of the evidence you use
to support your conclusions.
Imagine that you are an administrator at Jiranna Healthcare who has been
asked to analyze cash-flow data to determine the costs and benefits of
implementing a new capital project. For background, read “Capital Project Case
Study, Part 1.” Then, complete the “Capital Project Case Study, Part 2”
spreadsheet, which provides cash-flow data (costs and benefits) for the
proposal. Download and save the Excel spreadsheet, and use the information
provided to complete the following:
•
Calculate the cash inflows and outflows for each year.
•
•
Calculate the following metrics:
o Net present value (NPV)
o Internal rate of return (IRR)
o Modified internal rate of return (MIRR)
o Payback period
o Discounted payback period
In a 1- to 2-page report, provide your recommendation with rationale, as to
whether the project is acceptable, assuming Jiranna has a corporate policy
of not accepting projects that take more than 3.5 years to pay for
themselves, and assuming an 11% cost of capital
Part III: Conduct a Budgeting Evaluation
You are an administrator at Jiranna Healthcare. You have been asked to
conduct a budget variance analysis: analyzing performance by comparing
budgeted workload, revenue, and expenses for a range of different service
lines, with actual workload, revenue, and expenses for those service lines.
Open the document “Variance Analysis Case Study,” where you will find data
on the expenses, revenue, and inpatient product lines at Jiranna Healthcare.
Analyze the data and prepare a 3- to 4-page report. In your report, address
each of the five following questions. In each case, show the calculations that
you conducted to answer the question. Then, explain your conclusion and
how your calculations support your reasoning.
•
•
•
•
What was the hospital’s original profit forecast (assume away any issues
with depreciation, taxes, etc.)? Halfway through the fiscal year, what is the
hospital’s revised projection for FY11 profits?
Which inpatient service lines are over budget? Which inpatient service
lines are over budget after accounting for workload increases?
What two actions would you recommend be taken at the mid-year point if
you oversaw a fee-for-service hospital? In other words, where are the
problem areas on which you would focus your attention, and who might
provide ideas for “best practices” based on their performance?
What two actions would you recommend be taken at the mid-year point if
you oversaw a capitated hospital? In this case, the revenue spreadsheet
would be replaced with an overall budget of $50 million with which to
operate (rather than being able to bill for each episode of patient care).
Federal, state, county, and city hospitals normally operate under a capped
budget. Additionally, many HMOs also operate under a fixed per member,
per month (PMPM) capitated process.
Purchase answer to see full
attachment
Assessment Rubric
0
Not Present
1
Needs Improvement
2
Meets Expectations
3
Exceeds Expectations
Part I: Analyze Organizational Financial Data
Sub-Competency 1: Analyze financial and operational data to make effective management decisions.
Learning Objective 1.1:
Calculate and interpret
net sales, operating
expenses, operating
income, and net income
data to determine
significance of trend
result.
Calculation and
interpretation of net
sales, operating expenses,
operating income, and net
income data to determine
significance of trend
result is missing.
Calculation of the 5-year
net sales, operating
expenses, operating
income, and net income is
incomplete or inaccurate.
Response accurately
calculates the 5-year net
sales, operating expenses,
operating income, and net
income.
Interpretation of the data
and/or the explanation of
the significance of the
trend result is inaccurate,
unclear, or incomplete.
Response accurately
interprets the data and
effectively uses it to
explain the significance of
the trend result.
Learning Objective 1.2:
Calculate and interpret
profit margin, asset
turnover, return on
assets, and return on net
worth data to assess a
company’s profitability.
Calculation and
interpretation of profit
margin, asset turnover,
return on assets, and
return on net worth data
to assess a company’s
profitability is missing.
Calculation of the 5-year
total profit margin, asset
turnover, return on
assets, and/or return on
net worth is incomplete
or inaccurate.
Response accurately
calculates 5-year total
profit margin, asset
turnover, return on
assets, and return on net
worth.
Interpretation of the data
and/or the explanation of
the company’s
profitability is inaccurate,
unclear, or incomplete.
Calculation of the 5-year
Response accurately
interprets the data and
uses it to assess the
company’s profitability.
Learning Objective 1.3:
©2015 Walden University
Calculation and
Response accurately
Demonstrates the same
level of achievement as
“2,” plus the following:
Explanation of the
significance of the trend
results includes detailed
examples or illustrative
graphics.
Demonstrates the same
level of achievement as
“2,” plus the following:
Response provides
additional context for
these calculations by
comparing them to other
healthcare organizations
or figures for the industry.
Demonstrates the same
1
Calculate and interpret
current ratio, day’s cash
on hand, and working
capital data to evaluate a
company’s liquidity.
Learning Objective 1.4:
Calculate debt ratio and
times interest earned
ratio to evaluate a
company’s long-term
solvency.
0
Not Present
interpretation of current
ratio, day’s cash on hand,
and working capital data
to evaluate a company’s
liquidity is missing.
Calculation and
interpretations of debt
ratio and times interest
earned ratio to evaluate a
company’s long-term
solvency is missing.
Learning Objective 1.5:
The DuPont analysis is
Conduct a DuPont analysis missing.
to determine the
organization’s DuPont
characteristics and trends
across an analysis period.
1
Needs Improvement
current ratio, day’s cash
on hand, and/or working
capital is inaccurate or
incomplete.
2
Meets Expectations
calculates the 5-year
current ratio, day’s cash
on hand, and working
capital.
Interpretation of
Calculations to evaluate
the company’s liquidity is
inaccurate or unclear.
Response accurately and
clearly interprets the data
in order to explain the
company’s liquidity.
Calculation of the 5-year
debt ratio and times
interest earned ratio is
inaccurate or incomplete.
Response accurately
calculates the 5-year debt
ratio and times interest
earned ratio.
Interpretation of
Calculations to evaluate
the company’s long-term
solvency is inaccurate or
incomplete.
Response accurately and
clearly interprets the data
in order to explain the
company’s long term
solvency.
The DuPont analysis for
each of the five most
recent years is inaccurate,
or the analysis is only
provided for some of the
five most recent years.
Response accurately
applies a DuPont analysis
for each of the five most
recent years.
Interpretation of the
company’s DuPont
analysis characteristics
and trends is inaccurate
©2015 Walden University
Response accurately and
clearly interprets the
company’s individual
DuPont characteristics
and trends.
3
Exceeds Expectations
level of achievement as
“2,” plus the following:
Response provides
additional context for
these calculations by
comparing them to other
healthcare organizations
or figures for the industry.
Demonstrates the same
level of achievement as
“2,” plus the following:
Response provides
additional context for
these calculations, by
comparing them to other
healthcare organizations
or figures for the industry.
Demonstrates the same
level of achievement as
“2,” plus the following:
Response provides
additional context for
these calculations, by
comparing them to other
healthcare organizations
or figures for the industry.
2
0
Not Present
Learning Objective 1.6:
Make recommendations
for management decisions
based on evaluation of
financial information.
Recommendation for use
of financial data to make
effective decisions is
missing.
1
Needs Improvement
or unclear.
Recommendation for or
against purchasing an
organization is unclear.
Rationale supporting the
recommendation for or
against the purchase is
unclear or incomplete, or
the data cited in the
rationale is irrelevant or
unclear.
2
Meets Expectations
Response includes a
recommendation for or
against purchasing an
organization is based on
the operational and
financial analysis of the
organization up for sale.
Response includes a clear
and logical rationale
supporting the
recommendation and
data is used to support
the recommendation.
3
Exceeds Expectations
Demonstrates the same
level of achievement as
“2,” plus the following:
Response provides
additional rationale for
this recommendation by
comparing this company’s
data to industry
benchmarks.
Part II: Conduct an Operating Indicator Evaluation
Sub-Competency 2: Make effective recommendations based on an operative indicator evaluation.
Learning Objective 2.1:
Apply mathematical
principles to accurately
calculate cash inflows and
outflows.
Application of
mathematical principles
to accurately calculate
cash inflows and outflows
is missing.
Calculation of cash inflows
and cash outflows is
inaccurate or incomplete,
or response is not
relevant to the case
presented.
Response accurately
calculates the cash inflows
and outflows for each
year in the case
presented.
Learning Objective 2.2:
Apply strategies to
accurately calculate the
Application of strategies
to accurately calculate the
profitability of a capital
Calculations of the NPV,
IRR, MIRR, payback
period, and discounted
Response accurately
calculates the NPV, IRR,
MIRR, payback period,
©2015 Walden University
Demonstrates the same
level of achievement as
“2,” plus the following:
Response provides
additional context for
these calculations, by
commenting on how they
compare to other
healthcare organizations
or figures for the industry.
Demonstrates the same
level of achievement as
“2,” plus the following:
3
profitability of a capital
project.
Learning Objective 2.3:
Make recommendations
for management decisions
based on operative
indicator evaluation.
0
Not Present
project is missing.
Recommendations for
management decisions
based on an operative
indicator evaluation are
missing.
1
Needs Improvement
payback period of capital
project are incomplete or
inaccurate.
2
Meets Expectations
and discounted payback
period of a capital project.
Recommendation as to
whether the project in the
case presented is
acceptable is vague.
Response states a clear
recommendation as to
whether the project in the
case presented is
acceptable.
Rationale is given to
support the
recommendation does
not include information
(or includes
misinformation) from
calculations, and/or it
does not highlight (or
erroneously highlights)
the costs and benefits of
implementing the project,
and/or it does not take
into consideration (or
misinterprets) the
corporate policy for
accepting the capital
project.
©2015 Walden University
Clear and logical rationale
is given to support the
recommendation.
3
Exceeds Expectations
Response provides
additional context for
these calculations, by
commenting on how they
compare to other
healthcare organizations
or figures for the industry.
Demonstrates the same
level of achievement as
“2,” plus the following:
Rationale includes a
compelling argument for
the recommendation
based on the overall
evaluation.
Rationale includes
information from
calculations to support
the recommendation.
Rationale highlights the
costs and benefits of
implementing the project.
Rationale takes into
consideration the
corporate policy for
accepting the capital
project.
4
0
Not Present
1
Needs Improvement
2
Meets Expectations
3
Exceeds Expectations
PS003: Technology: Use technology tools effectively.
Learning Objective
PS 3.2:
Apply the features of
Excel to communicate
information effectively.
Excel spreadsheet is
incomplete or missing.
Excel spreadsheet has
some formatting issues
and is difficult to
interpret.
Excel spreadsheet has
effective formatting, and
the data can be easily
read and interpreted.
Excel spreadsheet
includes format and
design elements that
bring enhanced clarity to
the spreadsheet.
Calculation of the
hospital’s original profits
and related projections
are incomplete,
inaccurate, or missing, or
are not relevant to the
case presented.
Response includes
complete and accurate
calculations of the
hospital’s original profits
and related projections
for the case presented.
Demonstrates the same
level of achievement as
“2,” plus the following:
Part III: Conduct a Budgeting Evaluation
Sub-Competency 3: Conduct a budgeting evaluation.
Learning Objective 3.1:
Calculate a hospital’s
profit forecast and related
projections.
Calculation of a hospital’s
profit forecast and related
projections is missing.
Explanations of
calculations are unclear or
missing.
Learning Objective 3.2:
Identify inpatient service
lines that are over budget
and those that are over
budget after accounting
for workload increases.
©2015 Walden University
Identification of inpatient
service lines that are over
budget and which
inpatient service lines are
over budget after
accounting for workload
increases is missing and
not provided.
Response calculations of
inpatient service lines that
are over budget and/or
inpatient service lines that
are over budget after
accounting for workload
increases, are incomplete
or inaccurate, and/or are
Response includes clear
explanations of each
calculation.
Response includes
accurate and complete
calculations of inpatient
service lines that are over
budget and inpatient
service lines that are over
budget after accounting
for workload increases for
In addition to making a
correct projections,
response effectively
consider all relevant
factors such as taxes,
depreciation, etc. that
need to be considered in
deciding the hospital’s
profit projection.
Demonstrates the same
level of achievement as
“2,” plus the following:
Response includes a chart
or graph to support the
explanation of
Calculations.
5
0
Not Present
Learning Objective 3.3:
Recommend actions to be
taken to improve
performance in a fee-forservice hospital.
Learning Objective 3.4:
Recommend actions to be
taken for a capitated
hospital.
Recommendation of
actions to be taken to
improve performance (at
the mid-year point) in a
fee-for-service hospital is
missing.
Identification of the two
actions that should be
taken for a capitated
hospital is missing and not
provided.
1
Needs Improvement
not relevant to the case
presented.
Explanations of
Calculations are unclear
or missing.
Recommendation of
actions that should be
taken at the mid-year
point for a fee-for-service
hospital lack detail or are
not logical.
Response is not relevant
to the case presented in
terms of focusing on the
problem areas and/or
identifying those who
might provide ideas for
“best practices” based on
their performance.
Response identifies only
one action that should be
taken at the mid-year
point for the fee-forservice hospital in the
case presented, or two
actions are identified but
are not logical or related
to the case presented.
Actions do not take into
©2015 Walden University
2
Meets Expectations
the case presented.
3
Exceeds Expectations
A clear explanation is
provides for each
calculation.
Response clearly details
recommendations for two
logical actions that should
be taken at the mid-year
point for a fee-for-service
hospital.
Response is relevant to
the case presented,
focusing on the problem
areas and identifying
those who might provide
ideas for “best practices”
based on their
performance.
Clearly details
recommendations for two
logical actions that should
be taken at the mid-year
point for the fee-forservice hospital in the
case presented.
Actions take into
consideration the
expectations of a
Demonstrates the same
level of achievement as
“2,” plus the following:
Response mentions both
focus of the attention,
and who might provide
ideas for “best practices”
based on desired
performance.
Demonstrates the same
level of achievement as
“2,” plus the following:
Response identifies more
than two clear and logical
actions that should be
taken at the mid-year
point for the fee-forservice hospital in the
case presented.
6
0
Not Present
1
Needs Improvement
consideration the
expectations of a
capitated hospital.
2
Meets Expectations
capitated hospital.
3
Exceeds Expectations
PS001: Written Communication: Demonstrate graduate-level writing skills.
Learning Objective
PS 1.1:
Use proper grammar,
spelling, and mechanics.
Multiple major and minor
errors in grammar,
spelling, and/or
mechanics are highly
distracting and seriously
impact readability.
Multiple minor errors in
grammar, spelling, and/or
mechanics are distracting
and negatively impact
readability.
Learning Objective
PS 1.2:
Organize writing to
enhance clarity.
Writing is poorly
organized and incoherent.
Introductions, transitions,
and conclusions are
missing or inappropriate.
Writing is loosely
organized. Limited use of
introductions, transitions,
and conclusions provides
partial continuity.
Learning Objective
PS 1.3:
Apply APA style to written
work.
APA conventions are not
applied.
Learning Objective
Vocabulary and tone are
©2015 Walden University
Writing reflects
competent use of
standard edited American
English.
Errors in grammar,
spelling, and/or
mechanics do not
negatively impact
readability.
Writing is generally wellorganized. Introductions,
transitions, and
conclusions provide
continuity and a logical
progression of ideas.
Grammar, spelling, and
mechanics reflect a high
level of accuracy in
standard American
English and enhance
readability.
Writing is consistently
well-organized.
Introductions, transitions,
and conclusions are used
effectively to enhance
clarity, cohesion, and
flow.
APA conventions for
APA conventions for
APA conventions for
attribution of sources,
attribution of sources,
attribution of sources,
structure, formatting, etc., structure, formatting, etc., structure, formatting, etc.,
are applied inconsistently. are generally applied
are applied correctly and
correctly in most
consistently throughout
instances. Sources are
the paper. Sources are
generally cited
consistently cited
appropriately and
appropriately and
accurately.
accurately.
Vocabulary and tone have Vocabulary and tone are
Vocabulary and tone are
7
PS 1.4:
Use appropriate
vocabulary and tone for
the audience and
purpose.
0
Not Present
inappropriate and
negatively impact clarity
of concepts to be
conveyed.
1
Needs Improvement
limited relevance to the
audience.
2
Meets Expectations
generally appropriate for
the audience and support
communication of key
concepts.
3
Exceeds Expectations
consistently tailored to
the audience and
effectively and directly
support communication
of key concepts.
PS005: Critical Thinking and Problem Solving: Use critical-thinking and problem-solving skills to analyze professional issues and inform best
practice.
Learning Objective
PS 5.1:
Analyze assumptions and
fallacies.
Analysis of assumptions is
missing.
Learning Objective
PS 5.2:
Generate reasonable and
appropriate assumptions.
Assumptions are missing.
Learning Objective
PS 5.3:
Assess multiple
perspectives and
alternatives.
Learning Objective
PS 5.4:
Assessment of multiple
perspectives is missing.
©2015 Walden University
Problems and solutions
are not identified.
Response is weak in
assessing the
reasonableness of
assumptions in a given
argument.
Response generally
assesses the
reasonableness of
assumptions in a given
argument.
Response clearly and
comprehensively assesses
the reasonableness of
assumptions in a given
argument.
Response does not
adequately identify and
discuss the implications of
fallacies or logical
weaknesses in a given
argument.
Response does not
adequately present and
discuss key assumptions
in an original argument.
Response identifies and
discusses the implications
of fallacies and/or logical
weaknesses in a given
argument.
Response provides a
detailed and compelling
analysis of implications of
fallacies and logical
weaknesses in a given
argument.
Response justifies the
reasonableness and need
for assumptions in an
original argument.
Response does not
identify nor adequately
consider multiple
perspectives or
alternatives.
Response presents
solutions, but they are
Response identifies and
considers multiple
perspectives and
alternatives.
Response justifies
selection of chosen
alternative relative to
others.
Response presents
solutions that are
Response presents
compelling supporting
Response presents and
discusses key assumptions
in an original argument.
8
0
Not Present
Use problem-solving skills.
©2015 Walden University
1
Needs Improvement
ineffective in addressing
the specific problem.
2
Meets Expectations
practical and work in
addressing the specific
problem.
3
Exceeds Expectations
arguments for proposed
solutions.
9
Overview
In this Assessment, you will use information from several case studies and
other documents to demonstrate your ability to make recommendations for
organizational decisions based on analyses of financial data.
This Assessment requires submission of two (2) files. Save your files as
follows:
•
•
Save the written sections of Parts I, II, and III
as FM007_firstinitial_lastname (for example, FM007_J_Smith).
Save the spreadsheet for Part II
as FM007_spreadsheet_firstinitial_lastname.
Instructions
Before submitting your Assessment, carefully review the rubric. This is the
same rubric the assessor will use to evaluate your submission and it provides
detailed criteria describing how to achieve or master the Competency. Many
students find that understanding the requirements of the Assessment and the
rubric criteria help them direct their focus and use their time most productively.
Rubric
This assessment has three-parts. Click each of the items below to complete
this assessment.
Part I: Analyze Organizational Financial Data
You are an administrator at Arizona Health Services (AHS), a large hospital
system. You have been asked to assist in evaluating the financial feasibility of
purchasing Jiranna Healthcare, a managed care organization in the San Jose
area. For this part of the Performance Task, you will conduct a 5-year analysis
of Jiranna Healthcare’s operational and financial data in order to determine
whether or not it is an attractive acquisition. Refer to “Jiranna Finances” for
financial statements to analyze.
Prepare a 2- to 3-page financial analysis. The focus must be on the content and
the depth of your analysis. Unless otherwise indicated, a 5-year trend
analysis—including the most recent year of available data—is expected.
Complete your analysis as follows:
•
•
•
•
•
•
Calculate the 5-year net sales, operating expenses, operating income, and
net income of Jiranna Healthcare. Once calculations are complete, interpret
the resulting data and explain the significance of the trend results.
Calculate the 5-year total profit margin, asset turnover, return on assets, and
return on net worth. Once calculations are complete, interpret the resulting
data and determine the company’s profitability.
Calculate the 5-year current ratio, day’s cash on hand, and working capital.
Once calculations are complete, interpret the resulting data and assess the
company’s liquidity.
Calculate the 5-year debt ratio and times interest earned ratio. Once
calculations are complete, interpret the resulting data and explain the
company’s long term solvency.
Complete a DuPont analysis for each of the five most recent years. Once
calculations are complete, interpret the resulting data and determine the
company’s individual DuPont characteristics (e.g., total margin, total asset
turnover & equity multiplier) and trends across the analysis period.
Ultimately a decision has to be made. Would you recommend purchasing
Jiranna Healthcare? Why?
Part II: Case Study #2
For the next part of this Performance Task, you are expected to complete a
number of calculations, and then interpret the numbers to provide
recommendations based on these analyses. It is essential both to show your
work and calculations, and to demonstrate how these calculations support your
conclusions. Be sure to explain your reasoning. You will be assessed on the
accuracy of your quantitative analyses and the quality of the evidence you use
to support your conclusions.
Imagine that you are an administrator at Jiranna Healthcare who has been
asked to analyze cash-flow data to determine the costs and benefits of
implementing a new capital project. For background, read “Capital Project Case
Study, Part 1.” Then, complete the “Capital Project Case Study, Part 2”
spreadsheet, which provides cash-flow data (costs and benefits) for the
proposal. Download and save the Excel spreadsheet, and use the information
provided to complete the following:
•
Calculate the cash inflows and outflows for each year.
•
•
Calculate the following metrics:
o Net present value (NPV)
o Internal rate of return (IRR)
o Modified internal rate of return (MIRR)
o Payback period
o Discounted payback period
In a 1- to 2-page report, provide your recommendation with rationale, as to
whether the project is acceptable, assuming Jiranna has a corporate policy
of not accepting projects that take more than 3.5 years to pay for
themselves, and assuming an 11% cost of capital
Part III: Conduct a Budgeting Evaluation
You are an administrator at Jiranna Healthcare. You have been asked to
conduct a budget variance analysis: analyzing performance by comparing
budgeted workload, revenue, and expenses for a range of different service
lines, with actual workload, revenue, and expenses for those service lines.
Open the document “Variance Analysis Case Study,” where you will find data
on the expenses, revenue, and inpatient product lines at Jiranna Healthcare.
Analyze the data and prepare a 3- to 4-page report. In your report, address
each of the five following questions. In each case, show the calculations that
you conducted to answer the question. Then, explain your conclusion and
how your calculations support your reasoning.
•
•
•
•
What was the hospital’s original profit forecast (assume away any issues
with depreciation, taxes, etc.)? Halfway through the fiscal year, what is the
hospital’s revised projection for FY11 profits?
Which inpatient service lines are over budget? Which inpatient service
lines are over budget after accounting for workload increases?
What two actions would you recommend be taken at the mid-year point if
you oversaw a fee-for-service hospital? In other words, where are the
problem areas on which you would focus your attention, and who might
provide ideas for “best practices” based on their performance?
What two actions would you recommend be taken at the mid-year point if
you oversaw a capitated hospital? In this case, the revenue spreadsheet
would be replaced with an overall budget of $50 million with which to
operate (rather than being able to bill for each episode of patient care).
Federal, state, county, and city hospitals normally operate under a capped
budget. Additionally, many HMOs also operate under a fixed per member,
per month (PMPM) capitated process.
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