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GoHealth currently earns 2.05% EAR on excess cash. They also have a line of credit to make up for cash needs that has an EAR
- GoHealth currently earns 2.05% EAR on excess cash. They also have a line of credit to make up for cash needs that has an EAR of 5%. GoHealth has an excellent cash manager that monitors their accounts daily. GoHealths medical supplies vendor has offered them terms of 1/7 net 30 for their monthly supplies delivery (the amount of the monthly purchase varies from month to month). When do you pay your medical supplies bill and why?
- 25% of GoHealths patients pay at the time of service, 50% pay the following month, 15% pay the second month following the service, 8% pay the 3rd month after the service. 2% of the bills are ultimately never paid. GoHealths sales for the 4th quarter of 2021 and January 2022 are:
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October $200,000
November $175,000
December $300,000
January $100,000
- Create an aging schedule for GoHealth as of the opening of business February 1.
- What is GoHealths account receivables balance as of the start of business Feb 1?
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