In the HMO industry, accounts receivable represent one of the major assets.

HMOs provide medical services to patients and then bill insurance companies and Medicare/Medicaid agencies.Timely collection is important to maintaining adequate liquidity. Locate the latest 10-K filings for Columbia/HCA Healthcare and FHP International, using the EDGAR archives.

Required

a. What is the value of net accounts receivable? What percent of total assets and current assets do they represent for each company?

b. What is the value of allowance for uncollectible accounts and what percentage of gross accounts receivable does it represent?

c. What are the net revenues for each HMO? Which HMO is larger?

d. Calculate the accounts receivable collection period for both companies.

e. Which company is doing a better job with its accounts receivable?