Cash and Working Capital Essay

1. What are four ordinary phases of the working bully regular recurrence? Four general phases of working cycle area. Purchasing of resources relates to the science of supplies and labor, such as the level of inventory necessary to maintain hard-nosed harvest-tideion schedules and the staff required to ensure adequate provision of services. b. intersection/sale of service healthcare services, no inventory. c. Billing refers to the release or discharge of a patient and the genesis of a bill. d. Collection the generation of a bill and the actual collection of the property from the patient or the patients third-party payer.2. What are the three primary sources of short-term gold?Three primary sources of short-term cash in hand area. Single-payment loan a loan that requires the payment repaid at the end of its duration instead of in monthly installments.b. Line of credit agreement that permits a firm to accept up to a specified limit during a defined loan period.c. Revolving credit agreement similar to a line of credit to a greater extentover that it is usually for a period longer than 1 year.Look morenon normal cash flows essay3. An formations short-term enthronisation options for idle cash include what four areas? List and provide their characteristicsa. short working capital needs a business needs specie to handle the standard and usual expenses associated with the operation of the company. It is safety device to assume that or so healthcare firms should carry approximately 20 days of expected cash transactions at any point in time to impinge on normal short-term working capital needs for cash. However, it is not safe to say that a not-for-profit healthcare firm would need only 20 days of cash.b. Capital investment needs a non-profit healthcare brass section needs funds to finance replacement and renovation of existing capital assets as well as investment in new product and service line areas. Different from taxable firm and investor-owned healthcare firm, the organization must routinely set aside funds for replacement and the meter of money reserved depends on percentageof debt financing to be utilise and projected future levels of capital expenditures.c. Contingencies a business needs funds to handle unexpected demands for cash flow, also called contingency funds. The amount of money reserved reflects the companys tolerance of risk.d. Supplement Operating bread non-profit healthcare organization needs funds to provide a full flow of investment earnings that can be used to stick on expected abstemiousnesses in operating earnings. This helps to prevent significant deterioration and weak operating margin in operating earnings.4. Discuss the term float. float is a brief moment in the banking system where money is counted double due to delays in processing checks. When a check is deposited, the bank credit a customers account and that is when float is created. However, it could take a couple of days for the check t o be received and clear by the payers bank. During this floating time, the amount on the check appears in both the payee and payers account. Also, float can be ready(prenominal) shares in a company for trading. These shares are making available to the general public for trading and the company is not liable for how the shares are world traded.ReferencesCleverley, W.O., Cleverley, J.O., Song, H.S. (2011). Essentials of Healthcare Finance (7th Edition). Sudbury, MA Jones & Bartlett Learning. (n.d.). Retrieved from http//www.investopedia.com/ toll/w/workingcapital.asp (n.d.). Retrieved from http//www.investopedia.com/terms/c/capital-investment.asp Tatum, M. (2003). What is short-term working capital?. In B. Harris (Ed.), Copyright protected 2003-2014 Conjecture Corporation.