Problem
Rich Jackson, a recent MHA graduate, has been hired by Tarheel Rehabilitation Clinic to manage a new prosthetic/orthotic supply division of the company. The division would sell primarily to rehab patients, some of whom pay for the devices themselves and some of whom have the bill paid by a third party insurer. Sales would be slow during the first few months, rise during the middle of the year, and then level off by the end of the year. Sales estimates for the first year of operation are shown in the table below (in thousands of dollars). Rich estimates that 30 percent of the division's customers will pay in the month of sale, 50 percent will pay in the month following sale, and the remaining 20 percent will pay in the second month following the sale.
Calculate the division's expected:
- Accounts receivables (A/R) at the end of each month
- Total sales for each quarter of operation
- Average daily sales (ADS) for each quarter of operation
- Average collection period (ACP) for each quarter of operation
- Aging schedules for the end of each quarter.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.