Financial Statements

[Name of Instructor]

Financial Statements of Health Care Organization

Introduction

The healthcare organization for the purpose of studying financial statements is Coventry Health Care, which is a Virginia based health care organization. The main criteria of choosing Coventry Health Care is that the organization is based in Virginia and it is publicly traded company, which is listed in the New York stock exchange NYSE. In this case, it is first necessary to see the organization's roots. Coventry's was first established in the year 1986 in the month of November. Moreover, as the company grew it became a public limited company in 1991, listing itself with a ticker symbol 'CVH' in the NYSE. The reason behind choosing this certain Virginia based company is due to the excellence of the company. The excellence of the health care organization is determined by the service excellence and the financial discipline that the company strongly focuses on.

Discussion

The idea of this paper is to present a relationship between the financial statements of the Virginia based organization in order to present learning outcomes in regards to help study income statements, balance sheets, and cash flows. Like any accounting statements which are composed of four accounting classification of economic content: sources of funds, assets, property, the cost expenditures, revenue, turnover and etc. Such as trial balance is the basis of the four electronic signs, trial balance, but also assets balance sheet and income statement of the complex (Archer, 1979).

A variety of the Coventry Health Care company's financial statements, can be divided into two major parts of the basic financial statements and schedules. The basic financial statements include a balance sheet, income statement, and cash flows for the three statements, the company's financial accounting information reflects them from different angles. There are certain articulation between these three statements.

Assets = Liabilities + Shareholders' Equity, this equation is the main basis for the preparation of the balance sheet.

Profit = Revenue - Cost of this equation is the basic principle of the preparation of the income statement.

Third equation Assets = Liabilities + Equity + (Income - Cost), this equation reveals the relationship between the balance sheet and income statement.

Balance and income statement for the simplest relationship is the income statement of the Schedule, profit distribution table “retained earnings” figures listed equal to the balance sheet of the “retained earnings” figures. In addition to this simple pair endures, it can be seen by the ...