Question
Class, 1. Activity: I have selected the 6th Home Work Assignment (HWA) from the material in chapter 13 and 16 in our text, please complete
Class,
1. Activity: I have selected the 6th Home Work Assignment (HWA) from the material in chapter 13 and 16 in our text, please complete the assignment and post your responses to blackboard.
Question: #1
Your firm reduces its days in receivables from 87 to 67, which generates $3.4 million of new investment funds. Growth rate in new equity will increase because: (please discuss the reason for your choice)
1.Total asset turnover will increase
2.Investment income will increase
3.Both A and B
2. Activity: You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budget data is presented below:
Budgeted procedures: 10,000
Budgeted cost $400,000
Desired profit $80,000
It is estimated that Medicare patients comprise 40 percent of total radiology volume and will pay on average $38 per procedure. Approximately 10 percent of the patients are cost payers. The remaining charge payers are summarized below:
Payer Volume% Discount %
Blue Cross 20 4
Unity PPO 15 10
Kaiser 10 10
Self-pay 5 40
50%
Question: #2 What rate must be set to generate the required $80,000 in profit in the preceding example?
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