#### Description of this paper

##### Complete the aging schedule by filling in the percentage of total value column.

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solution

Question

Sacred Heart Hospital has the following receivables amounts, listed by age;Age of Account (Days) Value of Account Percentage of Total Value;0-30 \$ 5,450,000?;31-60 3,666,000?;61-90 1,278,000?;91-120 867,000?;Over 120 49,000?;a) Complete the aging schedule by filling in the percentage of total value column.;b) Interpret your results.;c) Using this data, estimate the hospital's ACP (days in patient accounts receivable);Assignment Assistance;a);Basically what you are doing here is finding what percentage of the total (11,310,000) is each of the age grouping value. For example, the 0-30 age group is valued at \$5,450,000, that is 48.2% of \$11,310,000 (5,450,000 divided by 11,310,000 times 100).;b);This question asks you to interpret the results (not just restate them). Use the example on page 198 of the text to frame your responses. In addition, think about the following questions as you construct your interpretation;What percentage of the receivables are less than 31 days old? Is this good or bad news?;What percentage is less than 61 days old? Is this good or bad news?;What percentage is over 60 and 90 days old? Is this good or bad news?;What generalizations can be made regarding receivables over 60 and 90 days old?;Should the hospital?s managers be concerned? Why or why not?;What happens to debt that goes uncollected?;c);The formula to solve this problem is on page 194 [ACP]

Paper#20496 | Written in 18-Jul-2015

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