two part paper. part 1 and part 2. explain the impacts that cash budgeting has o
complete Part 1 and Part 2. both parts in one Word document and label each part.
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explain the impacts that cash budgeting has on working capital. What are some of the resources that health care organizations can use for short-term financing? Be sure to explain your response using evidence and detail.
response should be two pages in length.
Part 2: The Total Amount of Required Replacement Reserves
Legacy Home Health LLC is a for-profit health care organization. They have $1,500,000 replacement funds set aside to open an additional office before closing the old one. The agency’s current accumulated depreciation on the funds is $2,000,000 and the average age of an office is 15 years. It is assumed that capital assets for the agency inflating at 5% each year. What cash balance does the agency need to have set aside today to meet their replacement needs without using debt financing?
As you answer the question, be sure to show your work as well as your answer.
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