Tuesday, August 27, 2019

Eco3 Assignment Example | Topics and Well Written Essays - 250 words

Eco3 - Assignment Example This  results  to  higher  flowing  cash  to  cater  for the  expenses  leading  to a  better  service  delivery. The  risk  of  writing  off debts in  plan  A is  unusually  high  which may  lead  to  losses. It is  also  clear  that in,  plan  B there is a  quicker  collection  of  Average  daily  patient  revenues. This  leads  to the  optimum  maximization  of  bills  paid  in by the  customers. In  plan  B,  there  is a  higher  level  of  strictness  on  credit  policies. This may  lead  to  lower  sales  revenue  in the  company  as  compared  to  plan  A. In  plan  B, the  aging  schedule  shows  that  payments  are  made  on  time  making  it  helpful  in  determining  the  cash  flow  in the  hospital. This is an  advantage  because the  management  makes  a  decision  on  cash  available  for their  plans  and budgets. In both  plans  A and  plan  B, at the  end  of the  first  quarter, the  accounts  receivable  are the  same, but the  payments  during the  months  vary  significantly. Zelman, W. N., McCue, M. J., & Glick, N. D. (2009).  Financial management of health care organizations an introduction to fundamental tools, concepts, and applications  (3rd ed.). San Francisco:

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