The company ECH has asked for help on increasing the inflow of the company. Some adjustments to the company may have to be made. In the information provided below it is said how much it will change. For example, the assets in this company and the employees like in many others are important lets’ examine the information first and their unhealthy threads. They are facing a downfall and need assistance; they gave me access to their simulation and budgets. First, we will give them a quick intro on what a budget is, basically we manage their assets and the outputs. They also have certain things like loans to the organizations coming from a banker another example is mortgages that they put on their clinics or hospitals as collaterals. Collaterals are like a security pledge they have in case the borrower does not pay the money back.
The company has a balance of opening cash balances of $986 that lets them have an inflow of operating activities of $2,828. This company has zero loans so this would make $2,828 inflow of the company. Operating expenses are $3,583 that give them a total outflow of $3,583 and a closing cash balance. After viewing the results the best cuts options understood were downsizing staff and reducing length of stay. The manager chooses the downsizing carefully because the corporation would have more money. This money may be a use in the shortfall within the corporation. It can help cut the cost even though the quality of the patients may be affected it is still worth the try. If the budgets are made they can produce income. Reducing length of stay was also selected because less amount was affected as far as the saving goes.
The Business plan on Personal Budget Balance Sheet, Cash Flow
Memo To:Mr. Christopher De Maline From: Date:02/17/2014 Re:Personal Budget, Balance Sheet, and Cash Flow Statement Dear Mr. De Maline Saving money is extremely important however; some people do not have healthy savings thus leading them to financial instability. Therefore, being a good steward over your finances should be consistent and begin at an early age and progress as you age. This will ...
After this there is an option of picking a loan the option advisor will choose the first one that gives the company $50,675 of interest paid out. It saves $677 this one will be chosen even though there will be problems because of how everything was downsizing the loan will help the saving target. Even though there is an increase of interest this may cause the loan to be paid in three months. This decision causes the EHC to have trouble to take care of the patients’ needs. EHC will receive $2,300,000, according to the simulation review statistics. This will serve as payment for Medicare and other managed care companies in which it will solve in three months. The simulation show that reducing the agency staff and changing skill mix would solve the cash flow instead of downswing staff and reducing of length of stay. The organization will let me know what decision needs to take place to acquire a cost-effective equipment acquisition and strategy. There is a need of new equipment or better equipment; it was advised to choose new equipment therefore there was a need for a new loan.
There is a difference between leasing and buying. Leasing the equipment is a capital lease, which is like a purchase or treated like a purchase. There is the operating lease in the equipment, which is like a rental or treated like one. The options are either buying or leasing. It was advised to choose; to buy new equipment with the loan for these items, which are High speed CT scanner, X-Ray Machine and Ultra Sound System.
Buying new equipment would have the amount of $7.50 interest for 9.15% with monthly installments of 24. The number of terms are 36 because they have maintenance annual fee of $113. Advance payment of four and a present value of $1,061. That is only for the High Speed CT Scanner the X-Ray machine is the amount of $320. Interest of 9.15% monthly installments of 10. The terms of 36 with annual maintenance fee of $48 advance payments of 453. The ultra sound system is of $500 with interest rate of 9.15%. Monthly installment of 16 of 36 months of terms. The annual maintenance fee is $75, for this they need four advance payments, and it has a present value of $707. The decision to get a new equipment is a benefit because there is no sense in buying old equipment which, they will replace eventually.
The Essay on Loans Interest Rate
Borrowers flooded the Department of Education and lenders with phone calls as they rushed to beat the deadline to consolidate student loans before interest rates rise. The variable interest rate on federal student loans will rise nearly 2 percentage points after midnight Thursday. Some borrowers could save thousands of dollars over the lives of their loans by consolidating at the lower rate. The ...
It was time to expand because Gilbert Sanchez dream is to expand for heart patients and there is a need for more space. There is several options that form the simulation; one was advised to get the HUD 242 loan insurance program. This loan is for 25 years, cost of issuance is $725,250 with an interest of 3.90% prepayment limitations of eight years, and it will be a mortgage on the facility. This was advised because not only but also does it have the lower interest rate but also the amount they will get is much larger. The outcome of the selection made of the cash flow of the organization it helped the borrower income improve. According to EHC simulation, the cash flow grew along with their capital situation.
As the advisor it was well-read that the company’s budget is a very important factor of the organization. It was also learned that there is several things that come into play like new equipment and how to acquire it like leasing it or buying it. If there was a chance the only thing I would do differently will be is pick reducing agency staff and changing the skill mix. This difference will be more effective for the patients. According to the simulation it says this will improve the quality and care of the patients because in the future a loan will be asked for at the end this will help the cash flow either way they put it. This is a good recovery for the company. What I also learned from the simulation is how helping with a budget can be easy if the manager knows the incomings and outgoings. Especially, know the cost and set of everything and what the organization is inputting.
The budget is better to have more cost-effective methods when involving the correct strategies when involving a budget that needs contemplation form many budget financial officers. To my understanding what I also learned from this contemplation was that if we have dreams we have to learn how to follow them. Just like Gilbert Sanchez did, right when he saw his organization almost fall under he got the right advice from the right advisor.
The Business plan on Analyzing The Master Budget
A master budget is a summary of a company’s plans in which specific targets are set for sales, production, distribution, and financing activities and that generally culminates in a cash budget, budgeted income statement, and budgeted balance sheet (www.mcgrawhill.ca/college/garrison5/student/olc/5mag). The “Analyzing the Master Budget” simulation summary takes you through ...
