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Recall that financial accounting focuses on communicating organizational-level data in the business’s financial statements aimed at external users, while managerial accounting focuses on creating comprehensive departmental plans and forecasts to be used internally by managers.
To perform a meaningful analysis of the three most common financial statements (income statements, balance sheets, and cash flow statements), health care managers must use financial ratios. Financial ratios are used to determine an organization’s profitability, asset management, and liquidity. They can also inform budgeting decisions and be used for comparative purposes (for example, to compare an organization’s current results to historical results or to the results of peer organizations).
For each scenario, consider how you would proceed if you were the healthcare manager of the organization. Be sure to include the following details to justify your thinking:
Here are the three scenarios for your consideration:
Your paper should be two to three pages in length (not including the required title page and reference pages) and conform to APA standards. Include at least three scholarly references in addition to the course content.
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