Why you would consider contributing capital to the hospital
Why you would consider contributing capital to the hospital
Finance
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Refer to the Statement of Cash Flows below to answer the questions below (must
be in APA format with references):
a. You are a potential creditor of Blank Memorial Hospital. Discuss three (3)
reasons why you would consider extending a line of credit to the hospital.
Also, explain at least one (1) concern you might have. Finally, discuss any
information that has not been presented to you that you would find useful.
b. You are a potential investor in Blank Memorial Hospital. Discuss three (3)
reasons why you would consider contributing capital to the hospital. Share at
least one (1) concern that you might have. Then discuss any additional
information you might require.
Blank Memorial Hospital
Cash Statement for the Year 2014
Operating activities
net income
500,600
depreciation
13000
increase in a/c receivables
-15000
decrease in inventory
24000
increase in prepaid expenses
12300
increase in a/c payables
9700
accrued expenses payables
-12000
Net income from operating activities
532,600
investing activities
equipment
860000
Net cash used in investing activities
-860000
financing activities
common stocks
100000
shareholders dividends
7400
retained earnings
493,200
Net cash flow from investing activities
600,600
change of cash
273,200
beginning cash
100000
cash at the end of year
373200