Aggressive working capital policy May increase the entitys 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 additio

Aggressive working capital policy May increase the entitys 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 additio

1. Aggressive working capital policy: (Points : 5) May increase the entitys 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 = $1,500,000Supply expense = $200,000Depreciation expense = $100,000Salaries and benefits = $700,000Other expenses = $200,000Net accounts receivable = $150,000What is the net income for the period? (Points : 5)$150,000$50,000$500,000$850,0003. 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 expensesThey are both excluded from current assetsThey are both considered current liabilitiesTotal revenue outpaces total avoidable fixed costs5. 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 costs6. A statement that reports the revenues minus expenses of an entity is called: (Points : 5)Income statementStatement of retained earningsBalance sheetReport of managementStatement of cash flows7. An imaging center has the following information: Revenue per test: $225Variable cost per test: $150Total fixed costs: $225,000Estimated number of tests = 3,500Calculate the total dollar contribution margin dollars and percentage. (Points : 15)228,8758. 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 months 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 Julys revenue is collected in August? (Points : 15)9. Accounts receivables can constitute more than 50% of a healthcare organizations 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


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