In May of 2020 Millbridge Hospital attempted to buy 100,000 N95 protective masks for their employees rather
Question:
In May of 2020 Millbridge Hospital attempted to buy 100,000 N95 protective masks for their employees rather than the 20,000 they would normally need. However, they found that due to the COVID pandemic, they were in direct competition with other hospitals, states, and even the Federal government for the masks which were in limited global supply. Rather than paying 40 cents per mask, ultimately they purchased 25,000 masks at $10 each, cash payment in advance, and required employees to reuse their masks. Fortunately, they had sufficient cash in suitable short-term investments to acquire the masks. What are the three principal reasons for an organization to hold cash and which apply to this situation? What are 5 examples of suitable short-term investments for a hospital?
Step by Step Answer:
Financial Management For Public Health And Not-for-Profit Organizations
ISBN: 9781071835333
7th Edition
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell