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A competitive hospital maintains current equipment and purchases new in order to stay current with the latest technology. If you were evaluating the capital budget performance of a hospital what factors would you consider justifying taking on more debt to

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1. Aggressive working capital policy: (Points: 5) May increase the entity's return, but it also increases the risk;Calls for maintaining high cash balances on hand;Leads to increased interest costs incurred by having to take on additional debt to meet short-term obligations;All of the above;2. A firm has the following accounts;Net patient revenue = $1,500,000;Supply expense = $200,000;Depreciation expense = $100,000;Salaries and benefits = $700,000;Other expenses = $200,000;Net accounts receivable = $150,000;What is the net income for the period? (Points: 5);$150,000;$50,000;$500,000;$850,000;3. A hospital issues $20 million in bonds and $60 million in equity to finance a new project. Its targeted debt to equity ratio is: (Points: 5);50%;33%;200%;300%;4. Which of the following statements about accounts receivable and inventory is true? (Points: 5);They are both considered current assets;They are both considered expenses;They are both excluded from current assets;They are both considered current liabilities;Total revenue outpaces total avoidable fixed costs;5. The breakeven point occurs where: (Points: 5);Total fixed costs and total revenue intersect;Revenue minus variable cost minus fixed cost = 0;Total profit margin and total costs intersect;Total variable costs and total revenue intersect;Total revenue outpaces total avoidable fixed costs;6. A statement that reports the revenues minus expenses of an entity is called: (Points: 5);Income statement;Statement of retained earnings;Balance sheet;Report of management;Statement of cash flows;7. An imaging center has the following information;Revenue per test: $225;Variable cost per test: $150;Total fixed costs: $225,000;Estimated number of tests = 3,500;Calculate the total dollar contribution margin dollars and percentage. (Points: 15);228,875;8. Your hospital has the following revenue for the months of July-September: July $3,000,000 August $2,500,000 September $4,000,000. If 30% of the month's revenue is collected in the same month, 40% is collected in the second month and 30% is collected in the third month, how much of July's revenue is collected in August? (Points: 15);9. Accounts receivables can constitute more than 50% of a healthcare organization's current assets. Managing accounts receivables is critical to the cash flow of the organization. If you were a billing manager what should you consider when implementing credit and collection policies? (Points: 20);10. Provide an example of a financial report and then explain in detail the steps in the financial analysis process. (Points: 20);11. A competitive hospital maintains current equipment and purchases new in order to stay current with the latest technology. If you were evaluating the capital budget performance of a hospital what factors would you consider justifying taking on more debt to purchase new equipment

 

Paper#74263 | Written in 18-Jul-2015

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