1. When a for profit hospital’s return on equity far exceeds its return on assets, the hospital is making good use of :
A. Long-term solvency B. Cash flow coverage C. Financial leverage D. Default risk minimization.
2. General Hospital has the following ratios: Days accounts payable outstanding, 55; days inventory held, 50; days receivable outstanding, 35. Which one of the following is the correct number of days that cash inflows and outflows are mismatched?
A. 40 days B. 70 days C. 30 days D. 140 days