What is Megatropolis Hospital’s days in accounts receivable? (please explain whe

Question

What is Megatropolis Hospital’s days in accounts receivable? (please explain where answer care from)


Megatropolis Hospital
Statement of Operations
For the Year Ended December 31, 2011

Revenues, Gains, Other Support
Net patient service revenue $ 1,500,000
Other revenue 200,000
Total Revenue 1,700,000

Expenses
Nursing Services 1,200,000
Administrative Services 200,000
Depreciation 100,000
Other Expenses 50,000
Total Expenses 1,550,000

Operating Income 150,000

Investment Income 50,000

Excess of revenues over expenses 200,000

Increase in Unrestricted Net Assets$ 200,000




Megatropolis Hospital
Balance Sheet
As of December 31, 2011 (2010 omitted)

Assets
Current Assets
Cash and cash equivalents $ 50,000
Net patient receivables 350,000
Total Current Assets 400,000

Properties and Equipment
Gross properties and equipment $ 900,000
Less accumulated depreciation 475,000
Net Properties and Equipment 425,000

Total Assets $ 825,000

Liabilities and Net Assets
Current Liabilities
Accounts Payable 200,000
Salaries Payable 50,000
Total Current Liabilities 250,000

Notes Payable 200,000

Unrestricted Net Assets 375,000

Total Liabilities and Net Assets$ 825,000

Explanation / Answer

Megatropolis Hospital’s days in accounts receivable =Net patient receivables from balance sheet Net patient receivables = 350,000 therefore Megatropolis Hospital’s days in accounts receivable = 350000

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