Take a look at Harrison, C., Harrison, W. (2012). Introduction to Health Care Finance and Accounting. Cengage, Clifton Park, NY. ISBN 9781111308674 Example 8-2 and Figure 8-6 on page 139.
Discuss your answers to the questions on page 140:
1. What is the purpose of the cash budget?
2. Read #2 on page 140 in Harrison, C., Harrison, W. (2012). Introduction to Health Care Finance and Accounting. Cengage, Clifton Park, NY. ISBN 9781111308674. How did you determine the minimum level of cash reserves needed to pay operating costs of the facility without borrowing?
3. Explain your understanding of the importance of knowing how to intelligently discuss these issues with the facility’s accountant(s). For example, why is it important for healthcare managers to gain knowledge of financing and accounting?