This weeks exercise is in two parts and is based on questions 35 and 39 on pages 250 - 252 in your textbook

Accounts receivable management. Given the information below, compute the days in accounts receivable, aging schedule, and accounts receivable as a percentage of net patient revenues for quarter 1 and quarter 2, 20X1. Compare the two quarters to deter- mine if the organization's collection procedure is improving. (Hint: For simplicity, assume that each month is thirty days. Dollar figures are expressed in thousands.) 35. Quarter 1, 20X1 Days outstanding Net accounts receivable Net patient revenues Quarter 2, 20X1 Days outstanding Net accounts receivable Net patient revenues Sep 1-30 $500 $1,000 Dec 1-30 $3,800 $4,000 Aug 31-60 $800 $5,000 Nov 31-60 $800 $5,000 Jul 61-90 $3,700 $9,000 Oct 61-90 $400 $6,000 Quarter 1-90 $5,000 $15,000 Quarter 1-90 $5,000 $15,000