Question
For your fictitious healthcare service, 3. March 1, 2019: You purchase $100,000 of supplies on credit for use in caring for your patients.5. May 1,
For your fictitious healthcare service, 3. March 1, 2019: You purchase $100,000 of supplies on credit for use in caring for your patients.5. May 1, 2019 through December 31, 2019: You begin accepting your first patients. You provide $300,000 in healthcare services for each month through the end of the calendar year. You invoice your patients' health insurance companies on the last day of each month. 6. May 1, 2019 through December 31, 2019: You use $30,000 in supplies to provide healthcare services to your patients each month. You record the use of supplies on the last day of each month. 7. June 1, 2019: You pay your suppliers $80,000 for supplies purchased on credit. 8. July 1, 2019: You receive payments from health insurance companies totaling $250,000. 9. August 1, 2019: a. You purchase $60,000 of supplies on credit for use in caring for your patients. b. You receive payments from health insurance companies totaling $320,000 10. September 1, 2019: You receive payments from health insurance companies totaling $225,000. 11. October 1, 2019: You receive payments from health insurance companies totaling $310,000. 12. November 1, 2019: a.You receive payments from health insurance companies totaling $240,000. b. You pay your suppliers $40,000 for supplies purchased on credit. 13. December 1, 2019: You receive payments from health insurance companies totaling $330,000. 14. December 15, 2019: You make a payment to your equipment financing company of $25,000.
How did you come up with the current asset amount (cash and account receivable)?
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