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8.1, Newark General Hospital, perform variance analyses using the static and flex budgets and actual results. More specifically, compute and interpret profit, revenue, cost, volume and price, and management variances. Equally important, explain how the variances relate to one another.

9.1 through 9.6,  time value of money, demonstrate the ability to compute the present value (PV) and future value (FV) of ordinary annuities and annuities due, as well as the effective annual rate (EAR), and the PV of uneven cash flows. These problems will drive home the point that a dollar today is worth more than a dollar in the future, and why the emphasis is placed on lessening the day’s sales outstanding (DSO) and the firms account receivables (AR). It also explains the current focus on more effectively managing the revenue cycle. The time value of money is also extremely important when conducting capital budgeting analyses.

9.12 Epitome Healthcare, become familiar with the concept of amortization. Since many organizations use debt to cover the acquisition of long-term (fixed) assets, its important that management know how to determine when these debt service obligations will be paid off (retired). To accomplish this, management can and does create an amortization schedule. construct such a table.
Once developed, they can change input variables such as the interest rate, loan amount, and a number of periods and see the impact on the time to pay off.  Use Excel to set up and perform mathematical computations and graphs will create a dynamic mechanism to observe how changes in financial inputs will impact the financial outcomes.

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