# Short-term loans can be risky because of: (Points: 5) credit risk the need to refinance and the... 1 answer below »

1. (TCO 6) Short-term loans can be risky because of: (Points: 5) credit risk the need to refinance and the possibility that interest rates will rise liquidity risk inflation risk 2. (TCO 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. (TCO 3) The advantage of activity-based costing is: (Points: 5) spreads the costs equally to the various activities allocates costs based on identified cost drivers costs less than other methods to implement 1 and 3 4. (TCO 6) A lock-box system is intended: (Points: 5) to speed-up collections to reduce float time to be a long-term financing tool 1 and 2 only 5. (TCO 5) 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% 6. (TCO 5) In order to calculate the net present value (NPV) of a capital investment, we must know: (Points: 5) the net accounting income generated from the investment the initial outlay and the incremental cash flow the rate of return generated on similar investments none of the above is necessary to calculate NPV 7. (TCO 4) All of the following are reasons for using flexible budgets except: (Points: 5) provide more relevant budgeting information to responsibility centers to more accurately determine variances to recognize variances are related to patient volumes ensure that the budget is evenly spread over the 12 month period 8. (TCO 2) 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 9. (TCO 7) When a surgical instrument factory increases the number of instruments produced, this will result in: (Points: 5) economies of scale economies of scope synergy entergy 10. (TCO 3) For a radiology department, annual depreciation charges for an MRI would be classified as: (Points: 5) direct and fixed direct and variable indirect and variable indirect and variable 11. (TCO 3) 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 12. (TCO 2) 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 13. (TCO 1)Which of the following is the best way a hospital can minimize the chances of running afoul of healthcare laws and regulations? (Points: 5) Seek JCAHO accreditation Post EMTALA signs Implement a compliance program Evaluate compliance with HIPAA 1. (TCO 6) Your hospital has the following revenue for the months of July-September: July $3,000,000 August$4,000,000 September $3,000,000. 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? How much of August's revenue is collected in September? (Points: 15) 2. (TCO 6) A hospital has received an invoice from one of its vendors for$50,000. The terms are 1/10, net 60. Explain the meaning of the credit terms. (Points: 15) 3. (TCO 5) You have been asked to determine the length of time required before a $500,000 deposit will double if the interest rate is 10 percent. Round to the nearest year. (Points: 15) 4. (TCO 3) An imaging center has the following information: Revenue per test:$250 Variable cost per test: 50% of revenue Total fixed costs: $300,000 Estimated number of tests = 3,500 Calculate the per test contribution margin in dollars and as a percentage. (Points: 15) 5. (TCO 5) A newly purchased piece of equipment shows the following: Initial Cost$3,000,000 Estimated yearly cash flow 25 percent of the initial cost Calculate the payback (in years) (Points: 15) 1. (TCO 6) Discuss the sources of cash inflow in cash budgeting: (Points: 40) 2. (TCO 2) A hospital has been consistently performing below its peer group as far as total margin. What are some of the reasons behind that, and what corrective action can management take to ensure performance within industry norms? (Points: 40) 3. (TCO 5) What would determine the optimality of a capital structure (debt/equity mix)? What is the advantage of debt financing for investor-owned entities? (minimum 35 words) (Points: 40)

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