Calculations Aging schedule Days Average daily patient revenue Days in accounts receivable Receivables as percent of revenues Quarter 1, 20X1 Sep Aug Jul Quarter 1-30 31-60 61-90 1-90 $4,900 $2,900 $11,900 $19,700 $11,900 $5,900 $19,900 $37.700 Formula Problem 5.34 Accounts receivable management Givens (in '000s) 1 Time 2 Days outstanding 3 Net accounts receivable 4 Net patient revenue Calculations A Aging schedule B Days CAverage daily patient revenue D Days in accounts receivable E Receivables as percent of revenues Givens (in '000s) 5 Time Quarter 2, 20X1 Dec Nov 6 Days outstanding 1-30 31-60 Oct 61-90 Quarter 1-90 7 Net accounts receivable $12,900 $900 $5,900 $19,700 8 Net patient revenue $19,900 $5,900 $11,900 $37,700 ACCOUNTS RECEIVABLE MANAGEMENT 235 EXHIBIT 5.12 KEY MEASURES TO MONITOR ACCOUNTS RECEIVABLE Quarter 1 ($ in thousands) Formula Mar Feb Jan Total A Days old at the end of Given 1-30 31-60 61-90 1-90 the quarter B Net accounts Given $3,600 $2,000 $800 $6,400 receivable C Aging schedule (Row B) (month)/ (row B) (total) 56.3% 31.3% 12.5% D Net patient revenues E Average daily patient Given (Row D) / No. of $6,000 $200 $5,000 $4,000 $15,000 $167 $133 $167 revenue days in period (row A) F Days in accounts receivable B/E 38.4 G Receivables as a percentage of revenue B/D 60% 40% 20% Formula Jun Quarter 2 ($ in thousands) May Apr Total H Days old at the end of Given 1-30 31-60 61-90 1-90 the quarter I Net accounts receivable Given $6,900 $1,000 $200 $8,100 J Aging schedule (Row I) (month)/ (row I) (total) 85.2% 12.3% 2.5% K Net patient revenues Given $11,500 L Average daily patient (Row K) / No. of $383 $2,500 $83 $1,000 $33 $15,000 $167 revenue days in period (row H) M Days in accounts receivable I/L 48.6 N Receivables as a I/K 60% 40% 20% percentage of revenue "For simplicity, each month is assumed to be 30 days.