Assume the following: - 20% of the hospitals bills are paid on day 30 - 40% of
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Question:
Assume the following:
- 20% of the hospital’s bills are paid on day 30
- 40% of the hospital’s bills are paid on day 60
- 28% of the hospital’s bills are paid on day 75
- The rest are paid on day 90
A) What is the hospital’s average collection period?_____________
B) If the hospital’s annual patient service revenue is $10,000,000 (assume 360 days), what is the current receivables balance? _____________________
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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