Problem
Your CFO and your team found your past Module's presentations on the ratio analyses and the notes to the ?nancial statement highly informative. Therefore, the CFO selected you to lead your team in the discussion regarding HealthCo Inc's capital structure during the upcoming top management retreat He (your CFO) wants you to focus on the following.
• Examine how capital structures differ between for- pro?t and not- for- pro?t health care organizations.
• Cash management is a key part of working capital management. He wants you to identify at least three reasons why health care organizations need cash on hand.
• Evaluate the two tools that managers use to manage working capital.
• While conducting investment analysis, you have the following scenario: Project A requires a $25,000 investment and provides $5,000 per year for six years; Project B requires an $8,000 project and provides $4,000 per year for two years. You will need to recommend which of those two projects has a better payback period, as you explain the strengths and weaknesses of this approach?