Your firm has $45.0 million invested in accounts receivable, which is 90 days of net revenues.

1. Your firm has $45.0 million invested in accounts receivable, which is 90 days of net revenues. If this value could be reduced to 50 days, what annual increase in income would your firm realize if the increase in cash could be invested at 7.5 percent?
Use the following information to answer questions 2, 3, and 4:
You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budgetary data is presented below:
Number of Budgeted Procedures 10,000
Budgeted Cost $400,000
Desired Profit $ 80,000
It is estimated that Medicare patients comprise 40 percent of total radiology volume and will pay on average $38.00 per procedure. Approximately 10 percent of the patients are cost payers. The remaining charge payers are summarized below:
Payer Volume % Discount %
Blue Cross
20
4
Unity
15
10
Kaiser
10
10
Self-Pay
5
40
50%
Your supervisor recommends the following method to set the rate per procedure in order t