Imagine that you are the CFO for Milwaukee Surgical Supplies, Inc. from problem 16.5. After performing the calculations requested by the problem, you have been asked to write a memo identifying whether the results indicate that receivables management are a strength by comparing these results to that of a competitor. (Use Home Infusions calculations for ACP and Receivables balance on page 584 of the text as the competitor.) In addition, please offer suggestions as to how Milwaukee Surgical could improve its ACP and Receivables balance in the future through the use of additional discounts or other strategies that you believe would be effective.

EXHIBIT 16.3 Home Infusion Home Care Aging Value of Percentage of Value of Percentage of Schedules Account Age of Account (Days) Account Total Value Total Value for Two Firms 50% 38 12 0 0 $ 9,000 5,000 3,000 2,000 1,000 $20,000 0-10 11-20 21-30 31-40 Over 40 Total $10,000 7,500 2,500 4% 2 15 10 $20,000 100% 105%