1) What are the six major components of strategic planning? There are also several varied approaches to strategic planning, explain the differences. And choose a healthcare organization and state their mission statement, vision statement, and value statements. 2) Every business plan includes an organization plan, a marketing plan, and a financial plan. What information is needed to prepare the organization’s business plan? What is included in the executive summary? What important questions are answered in the business plan for the healthcare organization? Part 2) Prepare a combined cash budget for Mayfield Health Center for the third quarter, with a column for each month and for the quarter total. Use the following information: Mayfield Health Center provides a variety of medical services. The company is preparing its cash budget for the upcoming third quarter. The following transactions are expected to occur: A. Cash collections from services in July, August, and September are projected to be $ 91,000, $151,000 and $124,000 respectively. B. Cash payments for the upcoming third quarter are projected to be $ 142,000 in July, $103,000 in August, and $133,000 in September. C. The cash balance as of the first day of the third quarter is projected to $31,000. D. The health center has a policy that it must maintain a minimum cash balance of $25,000. The health center has a line of credit with the local bank that allows it to borrow funds in months that it would not otherwise have its minimum balance. If the company has more than its minimum balance at the end of any given month, it uses the excess funds to pay off any outstanding line of credit balance. Each month, Mayfield pays interest on the prior month’s line of credit ending balance. The actual interest rate that the health center will pay is 2% of the prior month’s line of credit ending balance (if the company did not have an outstanding balance at the end of the prior month, then the company does not have to pay any interest). All line of credit borrowings are taken or paid off on the first day of the month. As of the first day of the third quarter, Mayfield Health Center did not have a balance on its line of credit.
