Difference between accrual and cash accounting.
Accrual follows the Recognition principal where revenues are recognized when
services a performed and expenses are acknowledged when incurred.
Cash follows the methodology that only transactions
How do capital structure and liquidity ratios differ in providing insight into an organizations
ability to pay debt obligations? Identify two situations with higher activity ratios with declining
Liquidity ratios specify insigh
State the three reasons why a healthcare facility holds cash.
1. Daily Operations
2. Precautionary Purposes
3. Speculative Purposes
What are the main sources of temporary cash?
1. Bank Loans
2. Extension of Credit from Suppliers
What is the future of $12,000 deposited today when time expands at 11% per year?
What is the present value of $10,000 ten years from now as interest rates increase?
What trends can you identify? (Positive, negative,
What areas are most signifcant? (Which ratios are telling the bigger stories?)
Which company would you say is in better position from an operational,
cash management, debt and market
point of view?
If a $1,000 zero coupon bond with a 15 year maturity has a market price of $315.20, what is its
rate of return?
Rate of Return = 8.00%
A tax-exempt bond was recently issued at an annual 12% coupon rate and matures 20 years from
Marleboro Memorial Hospital is expecting its new cancer center to generate cash flow.
a) Payback 3 years
NPV @ 12% - >
c) IRR = 33.98% NPV @ 16% - >
d) At both levels, the project should be accepted as the NP