Fargo Memorial Hospital has annual net patient service revenues of $14.4 million. The hospital'spatient accounts manager estimates that 10 percent of third party payers pay on Day 30, 60 percentpay on Day 60, and 30 percent pay on Day 90.

a. I need Fargo's average collection period. (Assume 360 days per year throughout this problem.) Please show work.

b. I need the firm's current receivables balance. Please show work.

c. I need the firm's new receivables balance if a newly proposed electronic claims systemresulted in collecting from third-party payers in 45 and 75 days, instead of in 60 and 90 days. Please show work.

d. Suppose the firm's annual cost of carrying receivables was 10 percent. If the electronic claimssystem costs $30,000 a year to lease and operate, I need to know if it should it be adopted. (Assume that the entirereceivables balance has to be financed.) Please show work.