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A psychiatrist clinic classifies its accounts receivable into the following four states State 1 . Paid State 2 . Bad debt State 3 . 0

A psychiatrist clinic classifies its accounts receivable into the following four states
State 1. Paid
State 2. Bad debt
State 3.0-30 days
State 4.31-90 days
The clinic currently has $8000 accounts receivable in the 0-30 days state and $2000 in the 31-90 days state. Based on historical transition from week to week of accounts receivable, the following matrix of transition probabilities has been developed for the clinic

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