Determine the following values of collections of february

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Your hospital has billed charges of $5,000,000 in February. If your collection experience indicates that 30 percent is paid in the month billed, 40 percent in the second month, 15 percent in the third month, and 10 percent in the fourth month, determine the following values:

a) Collections of February revenue in February, March, April and May.

b) Net accounts receivable at the end of March for February billings.

You are reviewing your targets for short-term cash reserves next year. You wish to carry at least twenty five days cash on hand. If annual budgeted cash expenses are $62,000,000, what amount of short-term cash reserves should be targeted?

 

Reference no: EM13340677

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