Reference no: EM13173750 , Length: 3000 words

Please utilize the hospital budget example and view year one, column one, and submit a report on what each section means.

Demonstrate your knowledge of the concepts that go in to the preparation of a budget.

Then suggest a few significant operational changes that would result in this hospital breaking even. If you study the budget carefully and look at the changes in subsequent years, as they will give you a hint, you will see from an operational perspective what you need to do to improve the bottom line. Basically, I am asking you to be the COO and, by reviewing the budget, as is, tell me what you will do to improve it.
Also, please explain the concept of working capital. What is it, and why is it needed? What are the consequences of:

1) Not managing working capital in a start-up hospital

2) Not managing working capital when revenue is increasing

3) Not managing working capital when revenue is decreasing

Apply your knowledge of working capital, and tie one of your improvements in this case to a capital purchase. Tell me what you need to buy to make it happen. Explain why it would be a capital purchase and not operational, and how you are going to get the funding to do this.

Download:- Hospital-budget.xls