Question 1 In most health care firms, purchasing power gains result because of what reason? Answer A. Monetary assets usually exceed monetary liabilities and inflation exists B. Monetary liabilities usually exceed monetary assets and inflation exists C. Both A and B D. Neither A nor B . 1 points Question 2 True or False? An insurance appraisal is one reasonable source to use for estimating physical assets’ replacement cost. Answer True False . 1 points Question 3 True or False? Depreciation in firms that operate in relatively new physical plants cannot be compared with the unadjusted historical depreciation costs of older facilities. Without financial reporting adjustments, new facilities may appear to have higher costs and thus be less efficient, whereas, in fact, the opposite may be true. Answer True False . 1 points Question 4 True or False? For restating financial statements, monetary items such as cash do not require adjustment because they already reflect current dollars. Answer True False . 1 points Question 5 True or False? In the US, healthcare organizations report their financial statements using constant dollars measured in units of general purchasing power. Answer True False . 1 points Question 6 True or False? Nonmonetary asset accounts must always be restated to the purchasing power as of the current date. Answer True False . 1 points Question 7 True or False? When restating nonmonetary asset accounts, the price index at the current date represents the price index from which the conversion is made, and the price index at the time of acquisition represents the index to which the conversion is made. Answer True False . 1 points Question 8 True or False? When using the constant-dollar method, gains or losses from holding assets must be adjusted. Answer True False . 1 points Question 9 Two major methods of asset valuation are: Answer A. historical cost and future cost B. historical cost and replacement cost C. acquisition cost and future cost D. historical cost and acquisition cost . 1 points Question 10 For restating financial statements to convert to constant dollars, what index is required by the Financial Accounting Standards Board? Answer

Please see file attached

1. Ratios 

   Ratios provide the users of financial statements with a great deal of information about the entity.  Do ratios tell the whole story?  How could liquidity ratios be used by investors to determine whether or not to invest in a company?    

   Guided Response:
   Let at least two of your peers know how debt service ratios can be used by a lender in determining whether or not to lend money to a company.  

2. Profit Margin 
   

   	Year Ending December 2012	Year Ending December 2011	Year Ending December 2010
   Revenues	40,000	35,000	33,000
   Operating Expenses
   Salaries	15,000	10,000	9,000
   Maintenance and Repairs	6,000	9,000	10,000
   Rental Expense	2,500	2,500	2,500
   Depreciation	2,000	2,000	2,000
   Fuel	4,000	3,500	2,500
   Total Operating Expenses	29,500	27,000	26,000
   Operating Income	10,500	8,000	7,000
   Sales and Administrative Expenses	6,000	4,000	3,000
   Interest Expense	2,500	2,000	1,000
   Net Income	2,000	2,000	3,000

Above is a comparative income statement for Cecil, Inc. for the years 2010, 2011, and 2012.  Calculate the profit margin for each of these years.  Comment on the profit margin trend. 
 

Guided Response:
 

Let at least two of your peers posts know what you changes you would recommend to improve the net margin of the company.

 

“Declining Products and International Expansion”  Please respond to the following:

• From the e-Activity, select a declining domestic product, one that has reached its declining stage domestically. Expound on how the use of the international product life cycle may strategically advance expansion of the product internationally. 
• Fatehi discussed the MNC executives’ state of mind towards foreign people, ideas, and resources, at home and abroad. As a domestic executive, considering the expansion to international markets, determine two (2) methods to address the different people, ideas, and resources for this expansion

 

 

“International Alliances” Please respond to the following:

• Choose a position for or against this idea:  International firms offer the best hope for creating world peace and improving economic conditions for all people. Justify your position.
• Create a strategy that elaborates on the advantages of an organization creating an alliance in each trade bloc prior to entering a trade agreement. Provide three (3)