Our orders are delivered strictly on time without delay
Paper Formatting
Double or single-spaced
1-inch margin
12 Font Arial or Times New Roman
300 words per page
No Lateness!
Our orders are delivered strictly on time without delay
Our Guarantees
Free Unlimited revisions
Guaranteed Privacy
Money Return guarantee
Plagiarism Free Writing
Publicly traded for-profit health care company within the United States
identify a publicly traded for-profit health care company within the United States. This might be a company like HCA, Pfizer, Merck, Johnson & Johnson, Tenet Healthcare, Walgreens, etc. Go to the company website and locate the ‘investor relations’ page (names for this page may vary) and locate the financial information for the company. For publicly traded firms, the 10K provides the annual financial report. Company annual reports might also contain summarized financial information.
Second, identify a not-for-profit or charitable organization of your choice. This might include a local not-for-profit hospital system or other healthcare-related charitable organization. Go to the organization’s website and locate any financial information you can find. This might require more due diligence than what was required with the for-profit firm you chose. Annual reports might contain some financial information, but some organizations might also provide financial information on their website.
Once you have done the research on your two organizations, respond to the following questions:
How easy was it to find financial information on each of the organizations you chose? What are 3 – 5 differences between the financial statements of each type of organization? Why do you think there is a difference in the level of financial detail provided by the two types of organization? In your opinion, should both types of organization have the same financial reporting requirements? Not-for-profits enjoy the benefit of not being taxed at the local, state, or federal level. In some cases, the level of local charitable support has not been sufficient for civic leaders. Has your charitable organization ever been challenged for the level of support they provide (do a Google search)? For-profit health care companies provide care but make a profit in the process. Are there any ethical considerations that are worth noting about for-profit health care? Does your chosen for-profit organization overcome any potential ethical concerns?
Sample Answer
Query successful
Try again without apps
The for-profit company selected is Johnson & Johnson (J&J), and the not-for-profit organization is CARE.
Financial Information Retrieval and Comparison
How easy was it to find financial information?
Organization Type
Organization
Ease of Finding Information
For-Profit
Johnson & Johnson (J&J)
Extremely Easy. A direct search for "Johnson & Johnson Investor Relations" immediately provides access to a dedicated, structured section of the website. Key documents like the 10-K (Annual Report), 10-Q (Quarterly Report), and proxy statements are prominently linked under "SEC Filings." This is mandated by the U.S. Securities and Exchange Commission (SEC).
Not-for-Profit
CARE
Moderately Easy. Financials are not as immediately visible as for a for-profit company, but a search for "CARE Financial Reports" on the site, or navigating to the "About Us" or "Resources" section, leads to a page with links to Audited Financial Statements and annual reports, often spanning several years. Furthermore, CARE's Form 990 (the required annual return to the IRS) is publicly available on sites like GuideStar.
Export to Sheets
3 – 5 Differences Between the Financial Statements
The fundamental difference lies in the purpose of the organizations, which dictates their accounting framework (GAAP for For-Profits vs. Non-Profit Accounting Standards).
Main Financial Statement Names:
For-Profit (J&J): Reports an Income Statement (or Statement of Earnings).
Not-for-Profit (CARE): Reports a Statement of Activities (or Statement of Revenues and Expenses).
Bottom Line/Purpose:
For-Profit (J&J): The goal is Net Income (or Profit). This represents the earnings available to shareholders.
Not-for-Profit (CARE): The goal is the Change in Net Assets. Any surplus is reinvested into the mission, not distributed to owners.
Equity Section/Fund Restriction:
For-Profit (J&J): The Balance Sheet includes Stockholders’ Equity (common stock, retained earnings).
Not-for-Profit (CARE): The Statement of Financial Position includes Net Assets, which are categorized as being with or without donor restrictions, reflecting legal limitations on how funds can be spent.
Expense Categorization (Specificity):
Not-for-Profit (CARE): Must produce a Statement of Functional Expenses which explicitly breaks down expenses into program services, management (administrative), and fundraising—a level of detail not required in a for-profit's main statements. This is crucial for demonstrating efficiency to donors.
Why the Difference in Financial Detail?
The difference stems from the primary stakeholders and accountability requirements of each organization.
For-Profit (J&J): The primary stakeholders are investors and creditors. The detailed financial reports (10-K and 10-Q) are mandatory, regulated filings to the SEC. This detail is required to allow the public to accurately assess the company’s current value, future cash flows, and risk so they can make informed investment decisions.
Not-for-Profit (CARE): The primary stakeholders are donors, grantors, and the general public (for tax exemption). The financial detail provided, particularly the breakdown of expenses in the Form 990, is focused on proving that the organization is fulfilling its charitable mission and not abusing its tax-exempt status. The transparency is geared toward trust and mission accountability, not capital market analysis.
Should Both Have the Same Financial Reporting Requirements?
No, both types of organizations should not have identical financial reporting requirements, though they should maintain a high, standardized level of transparency.
For-Profit Reporting (SEC): Must remain focused on metrics crucial for capital markets, such as earnings per share and return on equity.
Not-for-Profit Reporting (IRS/FASB): Must remain focused on metrics crucial for mission accountability, such as the program efficiency ratio and the level of uncompensated care (for hospitals).