The following article shows the tip of the iceberg of hospital accounting. I have assumed some aspects to make it easier to elaborate on some topics. In real world some of these aspects explained below may be handled differently based on the situation and the hospital policies. See how bad debt is different than charity […]

An auto insurance service provider incurred losses to the tune of $25 million this year. Last year the profits were recorded at $50 million. The company has hired you as the consultant to identify the reasons causing these losses and find solutions to overcome the situation. The company provides auto insurance coverage only in one […]

Some Important metrics/key figures to ask or know : Electricity production External electricity sales volume External gas sales volume External revenue EBITDA Operating result Income before tax Net income/shareholders’ share in income Recurrent net income Return on capital employed (ROCE) Weighted average cost of capital (WACC) before tax Value added Capital employed Cash flows from […]

Birds eye-view of the Balance Sheet and Income statement. Please remember its very high level comparison.   Balance Sheet and Income Statement Comparison Manufacturing Financial Services Assets Cash Cash Accounts Rec Investments Inventory Loans Fixed Assets Bldg’s Liabilities Accounts Payables Deposits Long Term Debt Savings Equity Other Borrowings Capital  Inc/Exp Sales Total Int. Income COGS Total. […]

You are hired as a Management Consultant from McKinsey with some recognition among prestigious accounting and costing circles. Here is the run down of the case….. Union County serves a populace of around 40,000 citizens, and carries out certain welfare services for its citizens such as a recreation facility complete with gymnasium, a library, children’s […]