Selected financial data for Sun Health Group and Select Medical Corporation, two companies in the health-care industry,

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Selected financial data for Sun Health Group and Select Medical Corporation, two companies in the health-care industry, are as follows:


Selected financial data for Sun Health Group and Select Medical


Required:
1. Calculate the receivables turnover ratio and average collection period for Sun Health and Select Medical. Round your answers to one decimal place. Compare your calculations with those for Tenet Healthcare and LifePoint Hospitals reported in the chapter text. Which of the four companies maintains a higher receivables turnover?
2. How does the receivables turnover ratio reflect the efficiency of management? Discuss factors that affect the receivables turnoverratio.

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Financial Accounting

ISBN: 978-0078025549

3rd edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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