1. a. What is the goal of cash management?

b. Briefly describe float and the following associated cash management techniques:

• Receipt acceleration

• Disbursement control

2. a. What is a cash budget, and how is it used?

b. Should depreciation expense appear on a cash budget? Explain your answer.

3. a. Give two reasons why businesses hold marketable securities.

b. Which types of securities are most suitable for holding as marketable securities?

c. Suppose Southwest Regional Medical Center has just raised $6 million in new capital that it plans to use to build three freestanding clinics, one each year over the next three years. (For the sake of simplicity, assume that equal payments have to be made at the end of each of the next three years.) What securities should be bought for the firm’s marketable securities portfolio, assuming that the firm has no other excess cash? (Hint: Consider both the type and maturity of the securities.)

d. Now, consider the situation faced by the Huntsville Physical Therapy Group. It has accumulated $20,000 in cash above its target cash balance, and it has no immediate needs for this excess cash. However, the firm may at any time need some part or all of the $20,000 to meet unforeseen cash needs. What securities should be bought for the firm’s marketable securities portfolio?

4. a. What is meant by the term revenue cycle?

b. What are the three sets of activities that comprise the revenue cycle?

c. What is the overall goal of revenue cycle management?

5. a. Define the term average collection period (ACP).

b. How is ACP used to monitor overall revenue cycle performance?

c. What is an aging schedule?

d. How is an aging schedule used to monitor overall revenue cycle performance?

6. a. What is a metric?

b. What role do metrics play in revenue cycle management?

7. a. What is a just-in-time (JIT) inventory system?

b. What are the advantages and disadvantages of JIT systems?

c. Can JIT inventory systems be used by healthcare providers? Explain your answer.

8. Describe the three major sources of short-term financing.

9. a. What is the difference between free trade credit and costly trade   credit?

b. Should businesses use all the free trade credit that they can get? Explain your answer.

c. Should businesses use all the costly trade credit they can get? Explain your answer.

10. Explain briefly how healthcare providers typically obtain secured short-term financing, if such financing is needed.