Explain methodologies and processes used in preparing budget

Reference no: EM131452855

Assignment: The Impact of Financial and Strategic Planning.

Unit Outcomes Addressed in this Assignment:

• Describe the key components of a financial plan
• Define financial and strategic planning
• Explain the difference between a simple budget and a flexible budget
• Describe the use of variance analysis in the budget creation process

Course Outcome assessed/addressed in this Assignment:

Explain the methodologies and processes used in preparing budgets for health care organizations.

Apply research to the field of study.

Utilizing your textbook and the Kaplan Resource Library:

	0		Cash Revenues and Costs
	0	1	2	3	4	5
1. System cost	($2,000,000)
2. Installation expenses	(500,000)
3. Total cost	($2,500,000)
4. Net revenues		$750,000	$787,500	$826,875	$868,219	$ 911,630
5. Labor costs		(6o,000)	(63.000)	(66.150)	(69.457)	(72.930)
6. Maintenance cost		(150,000)	(157.5oo)	(165,375)	(173,644)	(182.326)
7. Supplies		(3o,000)	(31.500)	(33,075)	(34,729)	(36.465)
8. Net operating income		$ 510.000	$535,500	$562.275	$ 590,389	$ 619,908
9. Salvage value						750.000
10. Net cash flow	($2,500,000)	$ 510.000	$535.500	$562.275	$590.389	$1.369,908

Profitability measures (from Chapter 9):
Net present value = $82.493.
Internal rate of return = 11.1 %.

- Bayside Memorial Hospital is considering purchasing a new MRI machine. Based on the cash flow analysis above would you recommend that the healthcare facility, Bayside Memorial Hospital, purchase an MRI machine? In your analysis please review the following concepts: incremental cash flow, sunk cost, opportunity cost, strategic value, inflation effects. (These are the assignment instructions, allowing students to master the key components of the rubric including : Describe the key components of a financial plan define financial and strategic planning; explain the difference between a simple budget and a flexible budget; and describe the use of variance analysis in the budget creation process

Requirements

- Responses to the questions should be written in a clear, detailed manner and observe the conventions of Standard American English (correct grammar, punctuation, etc.).

- Follow APA formatting for the title and reference page, as well as APA formatting within the paper itself (Times New Roman 12-point font and properly double spaced).

- The minimum page limit is 2 pages or 600 words.
- The maximum page limit is 4 pages or 1200 words.

- Information should be summarized in your own words with appropriate APA formatting and citation style of in-text citations in the body of the text to acknowledge the source(s) of information.

- Include at least one reference. The course textbook may count towards the reference requirement for this Assignment. All references will follow APA format.

- Follow the conventions of Standard American English (correct grammar, sentence structure, punctuation, etc.).

- Your work should display superior content, organization, style, and mechanics.

- For additional support, utilize the Kaplan Writing Center and review the document entitled, "Writing Center Resources," found in Doc sharing.

Reference no: EM131452855

Questions Cloud

What is the maximum hourly delivery rate of the four trucks : Four forklift trucks are used to deliver pallet loads of parts between work cells in a factory. Average travel distance loaded is 350 ft.

Terms debit and credit mean in recording transaction : Prepare a memo explaining what the terms debit and credit mean in recording transaction

Midstream energy partners should proceed : Your task is to assess whether Midstream Energy Partners should proceed with this pipeline investment.

Flow many vehicles are required to operate the system : A rail guided vehicle system is being planned as pan of an assembly cell. The system consists of two parallel lines, as in Figure.

Explain methodologies and processes used in preparing budget : Explain the methodologies and processes used in preparing budgets for health care organizations. Explain difference between simple budget and a flexible budget.

Mid-american energy : On the day Warren Buffett announced that Berkshire Hathaway’s subsidiary, Mid-American Energy.

The company uses effective-interest amortization : The proceeds from the bonds are $19,604,145. The company uses effective-interest amortization.

Profitability index for the series of future cash flows : Find the profitability index (PI) for the following series of future cash flows, assuming the company’s cost of capital is 10.61 percent.

Determine the minimum number of vehicles needed in factory : An automated guided vehicle system is being proposed to deliver parts between 40 work-stations in a factory.

User Account

All Pages