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Please show all work. 3 Starfish Surgical Associates currently has $1,000,000 in accounts receivable. Its days in patient accounts 4 receivable is 55 days (based
Please show all work.
3 Starfish Surgical Associates currently has $1,000,000 in accounts receivable. Its days in patient accounts 4 receivable is 55 days (based on a 365-day year). The agency wants to reduce its days in receivables to 5 a lower level of 45 days by pressuring more of its customers to pay their bills on time. The 6 CFO estimates that, if this policy is adopted, the agency's net patient service revenue will fall by 12%. 7 Assuming that the practice adopts this change and succeeds in reducing its receivables to 45 days 8 and loses 12% of its net patient service revenue, what will be the level of accounts receivable following the changeStep by Step Solution
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