HMGT 322 PART 5

6

Choose ONE (1) question below to discuss and then respond to TWO (2) of your classmates answers (Try not to repeat others answers). Include the question with your response.

1. What is depreciation expense and what is its purpose? What type of long-term assets are subject to depreciation and what factors are needed to calculate depreciation?.

2. What is the difference between a current and a long-term liability? Provide an example of each in the healthcare sector.

3. What is debt financing? Identify ONE advantage and ONE disadvantage of debt financing?

4. What is equity financing? Identify ONE advantage and ONE disadvantage of equity financing.

5. Why is it important to calculate the future value of a dollar borrowed today?  What is the future value formula?

 Make sure you are properly citing your source(s) and providing your reference(s) for information you obtain from another source.

Include up to 2-3 references

Readings

2) Introduction to Financial Accounting ((Dauderis and Annand)

   a) Chapter 8: Long-Lived Assets

   b) Chapter 9: Debt Financing: Current and Long-term Liabilities

   c) Chapter 10: Equity Financing

(PDF)  http://lifa1.lyryx.com/textbooks/ANNAND_1/base2014/DauderisAnnand-IntroFinAcct-2014A.pdf

(HTML)  http://lifa1.lyryx.com/open_introfa/

3)  Understanding Asset Depreciation & Section 179 Deductions | Paychex

4) How to calculate depreciation on computer hardware: A cheat sheet  https://www.techrepublic.com/article/how-to-calculate-depreciation-on-computer-hardware-the-smart-persons-guide/

5) Accounting for Computer Software Costs  https://www.gma-cpa.com/blog/accounting-for-computer-software-costs

6) IRS Section 179  Section 179 Offers Physicians Huge Tax Savings (medicaldevicedepot.com)  

References:

· A good short overview of what capital structure is and why it’s important.  http://beginnersinvest.about.com/od/financialratio/a/capital-structure.htm

· The basics of capital structure  Capital-structure-strategy-in-health-care-systems.pdf (researchgate.net)  

hoose ONE (1) question below to discuss and then respond to TWO (2) of your classmates answers (Try not to repeat others answers). Include the question with your response. 

1. Why is it important to hold some liquid and some illiquid assets?

2. Discuss one of the liquidity ratios in this week’s course content? Using the 2014 data for Holy Cross in this week’s Power Point summary slides, what is the 2014 ratio you identified? Given information provided what is your interpretation of this ratio?

3. Discuss the formula used for a ratio to measure leverage or capital structure? What exactly does this ratio measure?

4. Identify two operating indicators and explain how they may supplement a ratio analysis using financial data.  How would you interpret the operating indicators? 

Make sure you are properly citing your source(s) and providing your reference(s) for information you obtain from another source.

2-3 refernce

2) Chapter 12: Financial Statement Analysis (Dauderis and Annand)

(PDF)  http://lifa1.lyryx.com/textbooks/ANNAND_1/base2014/DauderisAnnand-IntroFinAcct-2014A.pdf

(HTML)  http://lifa1.lyryx.com/open_introfa/

3) Chapter 13.3: Ratio Analysis (Managerial Accounting, Saylor)

https://saylordotorg.github.io/text_managerial-accounting/s17-03-ratio-analysis-of-financial-in.html

4)  Critical Access Hospitals: 10 Key Indicators

5) “The role of non-financial performance measures in predicting hospital financial performance: the case of for-profit system hospitals.” (Abstract)

http://www.ncbi.nlm.nih.gov/pubmed/22372029

6) OPTIONAL: Review videos below on ratio analysis.

7)  Help4UHMO  organization financial statements