Your hospital has billed charges of 4000000 in february if

Question

Your hospital has billed charges of $4,000,000 in February. If your collection experience indicates that 20% is paid in the month billed, 40% in the second month, 20% in the third month, and 5% in the fourth month, determine the following values:

(a) Net patient revenue for February

(b) Collections of charges in February

(c) Net accounts receivable at the end of March for February billings