Running head: FINANCIAL HEALTH1The Financial Health of Pearland Medical-CenterAuthors NameProfessors NameCourse TitleDateFINANCIAL HEALTH2The Financial Health of Pearland Medical-CenterAll of the financial activities and decisions of an organization have an effect of its currentfinancial health and that of the future National Underwriter Company. Financial health is refersto the financial position/situation of an individual or organization. Financial health is determinedby factors such as net income, cash flow, and profit margins according to Klontz and Kahler(2008). The signs of good financial health in an organization are a stable income, little variationsin expenditure, big profit margins on existing assets and a growing cash balance with projectedfuture growths (Klontz & Kahler, 2008). The Pearland Medical Center, the case study for thispaper, has presented big profit margins for the years 2012 and 2013. This paper will analyze thefinancial health of the Pearland Medical Center through a critical examination of the companysnet income, cash flow, and total gain/profit margin as well as attempt to give recommendationsbased on the income statement.The paper uses the vertical analysis method which, according to the article Vertical(common-size) analysis of financial statements (2017) by the Accounting for Managementwebsite, is a common technique of financial statement breakdown that displays every entry in thestatement as a base fi ...
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