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.
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Blank Memorial Hospital |
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Cash Statement for the Year 2014 |
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Operating activities net income |
500,600 |
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depreciation |
13000 |
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increase in a/c receivables |
-15000 |
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decrease in inventory |
24000 |
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increase in prepaid expenses |
12300 |
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increase in a/c payables |
9700 |
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accrued expenses payables |
-12000 |
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Net income from operating activities |
532,600 |
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investing activities |
|
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equipment |
860000 |
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Net cash used in investing activities |
-860000 |
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financing activities |
|
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common stocks |
100000 |
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shareholders dividends |
7400 |
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retained earnings |
493,200 |
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Net cash flow from investing activities |
600,600 |
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change of cash |
273,200 |
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beginning cash |
100000 |
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cash at the end of year |
373200 |
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