Dollar annual cost of financing its receivables balance

Assignment Help Financial Management

Reference no: EM13727250

Ocala Clinic's services result in $5,000 in daily billings to third-party payers. On average, it takes the clinic 50 days to collect its receivables. If the interest rate on loans needed to finance receivables (cost of carrying receivables) is 10 percent, what is the clinic's dollar annual cost of financing its receivables balance?

Reference no: EM13727250

Questions Cloud

Explain the purpose of the proclamation : Explain the purpose of the Proclamation of 1763. Was the proclamation effective? Why or why not? How did colonists, natives, and the British react to both the Proclamation and its effects? 200 words, references and citations Please!

Simple profit variance and flexible profit variance : Assume that the simple profit variance is -$200,000, while the flexible profit variance is +$200,000. Which of the following statements about this situation is most correct? When the volume forecast error is accounted for, the business lost money.

Treatment based on religious beliefs : If a patient refuses treatment based on his/her religious beliefs, are the religious beliefs acceptable and entitled to First Amendment protection? What will the process you could follow to grant this refusal request?

What motives does plutarch` attribute to cicero : What does Plutarch view as strengths and weaknesses of Cicero? What motives does he attribute to Cicero ? What kinds of things does Plutarch like to focus on in his writing of history?

Dollar annual cost of financing its receivables balance : Ocala Clinic's services result in $5,000 in daily billings to third-party payers. On average, it takes the clinic 50 days to collect its receivables. If the interest rate on loans needed to finance receivables (cost of carrying receivables) is 10 per..

Key elements involved in developing an advertising campaign : discuss the key elements involved in developing an advertising campaign, describe some of the different media options that could be utilized in an advertising campaign

What makes personal marketing work : what makes personal marketing work, Why are Dove and Axe so successful at it

Explain the protestant reformation impact on visual arts : The Protestant Reformation's impact on visual arts. Pretend you are in a company or some other group in which you feel there is corruption.

What role does the company culture have in promoting : Based on the information provided in Illustration Capsule 9.3(attachment), What role does the company's culture have in promoting ethical business behavior

User Account

All Pages