Operating income fell from [$19.1] million to [$5.5] million at a composite nonprofit hospital, and HA520's Unit 2 financial statement analysis locates the cause on the expense lines. Searches like "ha 520 unit 2 assignment example", "ha520 unit 2 sample" and "ha520 unit 2 example" land here.
What a finished HA520 Unit 2 financial statement analysis looks like
Four pages and two statements, each reproduced in condensed form with a prior-year column, a dollar change, a percentage change and a common-size column. On the statement of operations, total operating revenue reaches [$327.0] million, salaries climb [9.3] percent, supplies [10.0] percent and purchased services, where agency staffing is booked, [17.5] percent. Operating income drops from [$19.1] million to [$5.5] million, a margin of [1.7] percent against [6.1]. Investment income of [$9.8] million holds the excess of revenue over expenses at [$15.3] million, and the paper says plainly that this cushion sits outside operations. On the balance sheet, patient receivables grow [12.8] percent against revenue growth of [4.8], cash and short-term investments shrink from [$45.7] million to [$40.5] million, and board-designated funds rise on market gains. A half-page synthesis ties the statements together.
How a HA520 Unit 2 example is structured
A brief orientation to nonprofit hospital statements comes first, because the labels differ from a corporate filing: net patient service revenue rather than sales, excess of revenue over expenses rather than net income, and net assets split by donor restriction rather than shareholders' equity. Horizontal analysis follows, comparing each line with the prior year, and then vertical analysis expresses each line as a share of operating revenue. The two views sit in separate tables so neither crowds the other. Labor is treated in a dedicated paragraph, combining salaries, benefits and purchased services into one figure that rose from [63.4] to [67.0] percent of revenue. The balance sheet section concentrates on three lines rather than every account. A synthesis paragraph states the single conclusion both statements support, and a closing note lists what the notes to the audited statements would need to confirm.
Nonprofit labels first
Net patient service revenue, excess of revenue over expenses and net assets without donor restrictions defined once, so the comparison reads correctly for a tax-exempt hospital.
Line against line
Every revenue and expense line set beside the prior year in dollars and percent, with [$28.7] million of added expense weighed against [$15.1] million of added revenue.
Labor as one figure
Salaries, benefits and contract labor combined at [67.0] percent of revenue against [63.4], because agency spending hides in purchased services when that line is read alone.
Below the operating line
Investment income of [$9.8] million separated from operations, showing that most of the reported surplus came from markets rather than from patient care.
Receivables up, cash down
Patient receivables up [12.8] percent while cash and short-term investments fall by [$5.2] million, a pattern the paper flags for the revenue cycle rather than resolving here.
Where marks go in HA520 Unit 2
Credit here goes to analysis, and a paper that retypes both statements with a paragraph praising the hospital's size earns very little of it. Computation is expected on every material line, in dollars and in percentages, with at least one common-size view. The subtler error is reading the bottom line alone: a surplus of [$15.3] million looks healthy until investment income is separated from operations, and papers that miss this reach the wrong conclusion with confidence. Corporate vocabulary applied to a nonprofit, profit, shareholders, equity, signals unfamiliarity with the statements assigned. Balance sheet work that lists totals without asking why receivables outran revenue leaves half the analysis undone. A conclusion ought to name the cause of the margin decline rather than describe the decline again, and graders read the final paragraph for exactly that.
Get a HA520 Unit 2 example written to your instructions
Statements from the Unit 2 case, or the public audited financials of a hospital your prompt names, are the raw material, so pass them along with the instructions and rubric. Each line gets compared across years and as a share of revenue with the arithmetic visible, and the model arrives in 24-48h. No fee applies to a first sample.
HA520 Unit 2 questions, answered
Could a real hospital's audited statements be used instead?
Yes, if your prompt allows it. Many nonprofit hospitals and health systems post audited statements publicly, often through their bond disclosure filings, and tax-exempt organizations file an annual information return that anyone can view. The example uses composite figures so the arithmetic can be checked without identifying anyone, but the method transfers directly to a public filing.
Why combine salaries with purchased services?
Because contract and agency staff are often recorded under purchased services, so a hospital replacing employees with travelers can show modest salary growth while its labor cost climbs. The example combines salaries, benefits and purchased services into one labor figure and still shows each line separately, which lets a reader see both the total and where it moved.
Is a cash flow statement required?
That depends on the prompt; many Unit 2 assignments begin with the statement of operations and the balance sheet, leaving cash flows for later. The example mentions the statement of cash flows in its closing note, pointing to the gap between rising receivables and falling cash. If your instructions ask for all three statements, a third section follows the same horizontal and vertical method.