Question
Assume the following: - 20% of the hospitals bills are paid on day 30 - 40% of the hospitals bills are paid on day 60
Assume the following:
- 20% of the hospital’s bills are paid on day 30
- 40% of the hospital’s bills are paid on day 60
- 28% of the hospital’s bills are paid on day 75
- The rest are paid on day 90
A) What is the hospital’s average collection period?_____________
B) If the hospital’s annual patient service revenue is $10,000,000 (assume 360 days), what is the current receivables balance? _____________________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
A To calculate the average collection period we need to find the weighted average of ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
Students also viewed these Finance questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App