Milestone Three
Southern New Hampshire University
IHP 450: Healthcare Management & Finance
Impacts and Justification A.Short-Term Impact The cash flow statement will experience an
increase in the cash flow from the investment section as a short-term impact. Purchasing
automated kiosks will reflect a sizeable amount of money leaving the company and increase
the value of cash-out items (Murphy, 2023). The surge in outgoing finances is temporary
because the initial acquisition is a one-time purchase versus an ongoing loan, so it will not
reappear in the following year's financial statement. Similarly, the statement of functional
expenses will experience an increase in administrative costs as the VFC obtains new
equipment. This section includes the cost of daily operations necessary for a nonprofit
organization (Capital Business Solutions, 2023). Each report will describe an increase in
investments and suggest reduced liquidity for projects or other capital ventures. B.Long-Term
Impact A long-term impact on the balance sheet is the increase in fixed assets. Equipment and
technological investments typically do not or cannot undergo liquidation in the upcoming
year because they become a part of the daily production process of an operation and usually
have a useful life of more than one year (Murphy, 2023). In this respect, purchasing
Southern New Hampshire University
IHP 450: Healthcare Management & Finance
Impacts and Justification A.Short-Term Impact The cash flow statement will experience an
increase in the cash flow from the investment section as a short-term impact. Purchasing
automated kiosks will reflect a sizeable amount of money leaving the company and increase
the value of cash-out items (Murphy, 2023). The surge in outgoing finances is temporary
because the initial acquisition is a one-time purchase versus an ongoing loan, so it will not
reappear in the following year's financial statement. Similarly, the statement of functional
expenses will experience an increase in administrative costs as the VFC obtains new
equipment. This section includes the cost of daily operations necessary for a nonprofit
organization (Capital Business Solutions, 2023). Each report will describe an increase in
investments and suggest reduced liquidity for projects or other capital ventures. B.Long-Term
Impact A long-term impact on the balance sheet is the increase in fixed assets. Equipment and
technological investments typically do not or cannot undergo liquidation in the upcoming
year because they become a part of the daily production process of an operation and usually
have a useful life of more than one year (Murphy, 2023). In this respect, purchasing
