Question
Home Infusion provides an average of 6 home health visits a day at an average net charge of $118 per visit, for $1,134 in average
Home Infusion provides an average of 6 home health visits a day at an average net charge of $118 per visit, for $1,134 in average daily billings (ADB). They provide services approximately 258 days per year. All services are paid by two third-party payers: One pays for half of the billing 26 days after the service is provided and the second pays for the other half of billings in 10 days. Average cost of debt (i.e. the interest rate on bank loans) is 11%. What is the average accounts receivable balance? (Do not round intermediate calculations and round your final answer to 2 decimal places. Omit the "$" sign and commas in your response. For example, $12.3456 should be entered as 12.35.)
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