respost wk 4 peer response
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hmgt_322_wk4_peerrespon.docx322 Week #2 response: Need a peer response to each post (Discussion). There are 2 post total
Peer responses - Must be a minimum of 100 - 200 words and a maximum of 300 words for peer responses.
Must provide a minimum of at least one (1) reference in your peer responses. I have listed an example of a response.
There are two (2) required peer responses due per week. NO TITLE PAGE !!!!!!!!!!!!!
· Savannah Martin posted Feb 4, 2016 12:00 AM
Liquidity is how fast something can be turned into cash. Essentially, liquid assests are tangible and can be spent right away. This is the dollars and coins we have in our wallets right now. On the other hand, illiquid assests cannot be spent right away. Examples such as real estate take periods of time before they are capable of being converted to cash.
Having liquid assests are important in cases of emergencies. Emergencies that require you to have funds available now, such as getting laid off from your job or getting a flat tire can be remedied with liquid assests.
Illiquid assests are equally important. These assests can be safer to have, as they can't easily be stolen.
References
Kennon, Joshua. (2014) The importance of liquity and liquid assests. Retrieved from http://beginnersinvest.about.com/cs/banking/a/091102a.htm
· Example of a response: Great response. From a pure liquidity standpoint, the greater the organization's net working capital, the better. The net working capital is the difference between total current assets and total current liabilities. As healthcare leaders, we must understand there are costs to carrying current assets, so we must know how to balance the need for liquidity against the associated costs of maintaining liquidity (Gapenski, 2005). I know, it is easier said than done.
Gapenski, L.C. (2008). Healthcare finance: An introduction to accounting and financial management. (4th ed). AUPHA
Respond to Savannah Here:
· Daner Duncan posted Feb 3, 2016 10:51 PM
What is a simple interest loan?
Bank loans are a pivotal source of short-term credit. Interest on bank loans may be bided as simple interest, discount interest or installment interest.
Under the simple interest method, interest is calculated or preplanned only on the amount borrowed. In a simple interest loan, the organization receives the principal and repays the principal plus interest at the end of the loan period. (Norwicki, 2008)
It is calculated by multiplying the loan amount (e.g. $10,000) by the interest rate given to you by the bank (e.g. 5%) by the number of the payment periods over the life of the loan (e.g. 72 months). Simple interest is worked out at an accrual method. The interest of a simple inters loan accrued on a daily basis on the unpaid principal balance.
One other ting about simple interest is, if payments are paid before its scheduled due date less interest accrues and the principal balance will reduce at a faster rate.
On the contrary, if the payments for the loan are made after its scheduled due date more interest accrues and the balance of the loan will take a longer time to reduce because of the interest that accrued. The interest that accrued will be paid first before any money goes to the principal.
Sources:
Norwicki.M. (2008) The Financial Management of Hospitals and Healthcare organizations, Fourth Edition. Retrieved February 3, 16, From
