Problem 1 On a typical day, Park Place Clinic writes $100,000 in checks. Generally, those checks take four days to clear. Each day the clinic typically receives $120,000 in checks, which take three days to clear. a. What is the clinic's float? b. Explain why "float" is a useful cash management concept. Problem 2 Orlando Memorial Hospital has annual patient service revenues of $14,400,000. It has two major third- party payers, and some of its patients are self-payers. The hospital's patient accounts manager estimates that 10% of the hospital's billings are paid (received by the hospital) on day 30, 60% are paid on day 60, and 30% are paid on day 90. a. What is Orlando Hospital's average collection period? (Assume 360 days per year.) b. What is the hospital's current receivable balance? Problem 3 Miami Surgical Suppliers Inc. has gross sales for the year of $1,200,000. The collection department estimates that 30% of the customers pay on the tenth day, 40% pay on the thirtieth day, and the remaining 30% pay, on average, on the fortieth day after the purchase. (Assume 360 days per year.) a. What is the firm's average collection period? b. What is the firm's current receivable balance? Problem 4 San Diego Memorial Hospital has the following annual financial data and operational metrics: 250 Number of beds Total inpatient admissions Total outpatient visits Total patient revenues Outpatient mix Medicare payment percentage (revenues) Average length of stay Net price per discharge Cost per discharge 12,250 90,754 $111,900,050 16.2% 28.0% 5.8 days $7,653 $6,292 a. What is the hospital's profit per discharge? b. What is the hospital's total inpatient and total outpatient revenue? Hint: Apply patient mix metrics to total revenues.) c. What are the hospital's total revenues from Medicare patients? d. What is the total number of inpatient days? e. What is the hospital's occupancy rate? (Hint: The total number of available bed days for the year= the number of beds x 365 days.)