1- ratios used to evaluate working capital and cash performance are
current asset-current liability=working capital
net sales/working capital=working capital turnover ratio
current asset/current liability=current ratio
liquid ratio=liquid asset/current liability
super quick ratio=super quick asset/super quick liability
cash burn ratio=365*cash raised from initial investors/projected startup cost
2-purpose of investment policy within a healthcare organisation
Non profit organisations are service motive.so the people will get valuable services from the organisations. If anybody to invest fund to the hospital or whatever non profit organisation,then it will be a great advantage to the needy people.
1-investment policies helps to assign the responsibilities of all involved parties
2-The future goal objective etc can be clearly understood by a proper investment policy
3-it helps to reduce the errors related to investment proposals
4-investment activities can be monitored using these policies and recommendations can be taken on the basis of that
1. what are the ratios used to evaluate working capital and cash performance. 2. what is...
Problem 13-14A Effects of Transactions on Various Ratios [LO13-2] Denna Company’s working capital accounts at the beginning of the year follow: Cash $ 71,000 Marketable securities $ 22,000 Accounts receivable, net $ 352,400 Inventory $ 462,600 Prepaid expenses $ 8,700 Accounts payable $ 201,800 Notes due within one year $ 102,000 Accrued liabilities $ 60,900 During the year, Denna Company completed the following transactions: x. Paid a cash dividend previously declared, $31,000. a. Issued additional shares of common stock for...
1-Definition: high performance organization in healthcare 2-Challenges of high performance organization
When discounted cash flow methods of capital budgeting are used, the working capital required for a project is ordinarily counted as a cash inflow at the beginning of the project and as a cash outflow at the end of the project. True or False
Problem 13-3A Transactions, working capital, and liquidity ratios LO P3 Plum Corporation began the month of May with $1,200,000 of current assets, a current ratio of 2.10:1, and an acid-test ratio of 1.40:1 During the month, it completed the following transactions (the company uses a perpetual inventory system). May 2 Purchased $55,000 of merchandise inventory on credit. 8 Sold merchandise inventory that cost $55,000 for $125,000 cash. 10 Collected $30,000 cash on an account receivable. 15 Paid $31.000 cash to...
Denna Company’s working capital accounts at the beginning of the year follow: Cash $ 81,000 Marketable securities $ 24,400 Accounts receivable, net $ 376,400 Inventory $ 488,600 Prepaid expenses $ 15,700 Accounts payable $ 219,800 Notes due within one year $ 122,000 Accrued liabilities $ 69,900 During the year, Denna Company completed the following transactions: Ex. Paid a cash dividend previously declared, $41,000. Issued additional shares of common stock for cash, $222,000. Sold inventory costing $78,800 for $111,000, on account....
Use the following ratios for Pepsi to evaluate the company's 2019 performance relative to its 2018 performance in each of the areas requested. Be sure to identify the ratios used for each area and support your evaluation with the ratio values and their relationship (5 points each) Ratio December 2019 December 2018 Average colection period 42751 days 4032 days Current ratio 0 86 times 099 times Debt ratio 8107% 81 19% Inventory turnover 903 times 939 times Net profit margin...
Measuring venture capital fund performance: Simple ratios - Exercise 1 VC fund publishes data as presented in the table below. Calculate the DPI, RVPl and the TVPI. A Year 2 3 $1,000,000 $2,000,000 $1,100,000 $1,200,000 Fund distributions to investors (D) Capital collections from investors (C) Net asset value (NAV) $2,000,000
Most decisions made by management impact the ratios analysts use
to evaluate performance. Indicate (by letter) whether each of the
actions listed below will immediately increase (I), decrease (D),
or have no effect (N) on the ratios shown. Assume each ratio is
greater than 1.0 before the action is taken.
Note: Asumme each ratio is greater than 1.0,
instead of less.
Acid-Test De bt to Current Equlty Ratio Ratio Action Ratio 1. Issuance of long-term bonds 2. Issuance of short-term...
1.When using Ratios to evaluate a Firms performance which will lead to a faulty analysis of the Firm? Rely only on historic Financial Statements Accounting procedures that a firm is using don’t matter Financial Statements from outside the United States are dependable All of the above 2. The top part of Bobbie's Inc.'s 201x balance sheet is listed as follows (in millions of dollars). Current assets: Current liabilities Cash and marketable securities $ .5 Accrued wages and taxes $ 6...
For project A, the cash flow effect from the change in net working capital is expected to be 100 dollars at time 2, the level of net working capital is expected to be 500 dollars at time 0, and the level of net working capital is expected to be 1,600 dollars at time 2. What is the cash flow effect from the change in net working capital expected to be at time 1?