Studyportal

Dear Health Informatics Finance leader, I am a CFO of your company that  is named after your first name _Health Informatics ( F.N Health informatics). Our CEO asked us to prepare financials for 4 years ( Consecative) and show our company’s performance to a hospital who may be interested in acquiring us.

Our Financial statements and disclocure has to be accurate, clearly rationalizing  with as many details as necessary

Please choose either Option 1 or Option 2. All financials are expected to be on spreadsheet and complete the write up  separately on a document per the instructions below to explain financials.

Your professioanalism in developing this financial details will be greatly rewarded by CFO.

Please be aware, that the company is planning to sharing Part 2 details when you are closer to your deliverable.

I encourage you to read each statement here carefully to ensure you are not missing any of my ask on this important project deliverable.

Truly Yours

CFO

Sultan Raziuddin

 

 

Points = 100points ( 25% of grade) See class policy regarding late submissions.

Part 1 : Please Choose select one either option 1 or option 2.

Option 1 :

1. All figures below are Annual budgetary estimates ($) for Year 1.
2. Year 2 budgetary estimates are at 29%  revenue growth from previous year, while all other financials remained stable
3. Year 3 budgetary estimates are at 17% revenue loss from Year 2, Cash on hand depleted by$1,08,000. (possibly due to covid 19 losses)
4. See Available financial information below to make your interpretations and A7FM decisions.

 

1. Rev from source A: $15,000,000
2. Rev from source B: $ 900,000
3. Rev from source C: $ 5,000,000
4. Company owns a warehouse that is worth $10,000,000
5. Company also owns technology assets that are worth $250,000
6. Company pays rent for office in high rise building $500,000
7. Ongoing administrative cost averaging $500,000 (solid 50% is allocated for utilities)
8. Ongoing Travel and living cost averaging $300,000
9. Ongoing subscriptions for software & other services $100,000
10. Company cars leasing at $100,000
11. Cash on hand for C&B $5,000,000
12. 5 employees each C&B $70,000/yr.
13. 3 C-level officers each C&B $150,000/Yr.
14. Marathon Informatics E.H.R services averaging $150,000
15. Revenue write offs from, RCM billing discrepancies due to ICD error in claims & denials $250,000 each yr.
16. Separately, the company is interested in acquiring a test E.H.R system for training clients and employees at $150,000. Is this a good investments ? what is the C&B ratio ? When do they break even in year 1? (Each training is priced at $1,500/per unit and requires subscription services averaging at $5,000/per unit.

 

 

Option 2 :

1. All figures below are Annual budgetary estimates ($) for Year 1.
2. Year 2 budgetary estimates are 30% total rev loss from Year 1, while all other financials remained stable
3. Year 3 budgetary estimates are 30% total rev loss from Year 2, Cash on hand depleted by$3,000,000. (possibly due to covid 19)
4. See Available financial information below to make your interpretations and decision

 

1. Rev from source A: $10,000,000
2. Rev from source B: $ 1,000,000
3. Rev from source C: $ 5,000,000
4. Company owns a warehouse that is worth $5,000,000
5. Company pays rent for office in high rise building $200,000
6. Ongoing administrative cost averaging $400,000 (solid 60% is allocated for utilities)
7. Ongoing Travel and living cost averaging $200,000
8. Ongoing subscriptions for software & other services $100,000
9. Company cars leasing at $500,000
10. Cash on hand for C&B $4,008,000
11. 7 employees each C&B $70,000
12. 4 C-level officers each C&B $300,000
13. Marathon Informatics E.H.R services averaging $140,000
14. Revenue write offs from, RCM billing discrepancies due to ICD error in claims & denials $200,000 each yr.
15. Separately, the company is interested in acquiring a test E.H.R system for training clients and employees at $250,000. Is this a good investments ? what is the C&B ratio ? When do they break even in year 1? (Each training is priced at $1,500/per unit and requires subscription services averaging at $5,000/per unit.

 

Demonstrate the following

Goal: Publish all or any Fianncials, open to everyone.

1. All 5 Financial Statements,
   1. Be sure to add very short but reasonable comments on your interpretations, so finance manager can understand your reasoning and decision
   2. Keep clarity with each statements and show each year as next to each other on the same tab.( For example, Year 1 , Year 2 , Year 3, so it easier for you to compare)
   3. For each show, Est. Budgeted, (revised budgeted/option), Approved Budgeted, Actual, Variance, Year over Year (YOY), clear, but brief comment.
   4. Use appropriate tools you learned during lectures to demonstrate the benefits and breakeven analysis for E.H.R
   5. Use double space, charts or diagrams as necessary.

All your financials should be on spreadsheet in separate tabs.

Introduction:  Give one-page introduction about your organization focusing on business and financial at high level. ( Be sure to include and explain statements)

Financial Risk Management: What framework are you following for managing risk, explain your framework in detail. List of Potential risk and how do you plan to mitigate them. Make sure to list includes potentially known risk and unknown risk. Be sure to use the framework to demonstrate how your utilizing the framework to manage, mitigate and monitor & control risk. ( minimum 1- 3 pages with framework diagram)

Conclusion:  Minimum 1 page, be sure to include and comment on financials and explain where you think this company is heading based on financials and what would be your advice based on available financials, interpretations, risk, metrics and where do you see the strengths, opportunities for growth, threats, for your organization

Metrics: Demonstrate the use of BSC to Illustrate Financial Metrics, make sure to utilize a framework discussed in the class. Be sure to identify and highlight all important metrics, known as KPI’s ( key performance indicators).

Hints & Notes:

• If you plan to appreciate or depreciate any assets, then make sure you state that in your comments.
• Break down all the financials, then allocate them as necessary, then make your decisions, explain your decisions/interpretations
• Be Analytical in your conclusions and make decisions based on financials made available to you.
• Questions, Concerns, Please schedule time with me ASAP.
• Grading will be based on professionalism in quality of work and completeness of Project.