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Acme Hospital has the following receivables amounts, listed by age: Percentage of Total Age of Account (Days) Value of Account Value 0-30 $ 104,000
Acme Hospital has the following receivables amounts, listed by age: Percentage of Total Age of Account (Days) Value of Account Value 0-30 $ 104,000 A. 31-60 85,000 B. 61-90 45,000 C. 91-120 22,000 D. Over 120 7,000 E. Total $ 263,000 Part 1. Give the values for items A-E above. Part 2. Interpret your results. Part 3. Using these data, estimate the hospital's average collection period (days in patient accounts receivable). (Hint: Assume that the average age in the first category is 15 days [the midpoint of the range), the average age in the second category is 45 days, and so on. Ignore the receivables over 120 days).
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