Why you would consider contributing capital to the hospital

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Reference no: EM131016423

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.

Blank Memorial Hospital

Cash Statement for the Year 2014

Operating activities

net income

500,600

 

depreciation

13000

 

 increase in a/c receivables

-15000

 

 decrease in inventory

24000

 

 increase in prepaid expenses

12300

 

 increase in a/c payables

9700

 

accrued expenses payables

-12000

 

 Net  income from operating  activities

 

532,600

investing  activities

 

 

equipment

860000

 

 Net cash used in investing  activities

 

-860000

financing activities

 

 

common stocks

100000

 

shareholders dividends

7400

 

retained earnings

493,200

 

 Net cash flow from investing activities

 

 600,600

change of cash

273,200

 

beginning cash

100000

 

cash at the end of year

373200

 

Reference no: EM131016423

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