Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
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Textbook Question
Chapter 5, Problem 5.2.4MBA
Ratio of cash to monthly cash expenses
Pacira Pharmaceuticals
Inc. (PCRX)
Develops, produces, and sells products used in hospitals and surgery centers.
The following data (in thousands) were adapted from recent financial statements.
Comment on the results from parts (2) and (3).
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Assume selected financial data for Sun Health Group and Select Medical Corporation, two companies in the health-care industry, are as follows:
($ in millions)
Net Sales
Beginning AccountsReceivable
Ending AccountsReceivable
Sun Health
$1,930
$215
$202
Select Medical
2,240
414
353
Required: 1. Calculate the receivables turnover ratio and average collection period for Sun Health and Select Medical. Round your answers to one decimal place. Compare your calculations with those for Tenet Healthcare and LifePoint Hospitals reported in the chapter text. Which of the four companies maintains a higher receivables turnover? 2. How does the receivables turnover ratio reflect the efficiency of management? Discuss factors that affect the receivables turnover ratio.
Assume selected financial data for Sun Health Group and Select Medical Corporation, two companies in the health-care industry, are as follows:
($ in millions)
Net Sales
Beginning Accounts Receivable
Ending Accounts Receivable
Sun Health
$2,730
$255
$242
Select Medical
3,040
454
393
Required:
1-a. Calculate the receivables turnover ratio and average collection period for Sun Health and Select Medical.1-b. Which company maintains a higher receivables turnover?
Assume selected financial data for Sun Health Group and Select Medical Corporation, two companies in the health-care industry, are as follows:
($ in millions)
NetSales
Beginning Accounts Receivable
Ending Accounts Receivable
Sun Health
$
2,430
$
240
$
227
Select Medical
2,740
439
378
Required:
1-a. Calculate the receivables turnover ratio and average collection period for Sun Health and Select Medical. (Round Average accounts receivable to 1 decimal place. Enter your answers in millions.)
Receivables Turnover Ratio
/
=
Receivables Turnover Ratio
Sun Health
/
=
times
Select Medical
/
=
times
Average Collection Period
/
=
Average Collection Period
Sun Health
/
=
days
Select Medical
/
=
days
Chapter 5 Solutions
Survey of Accounting (Accounting I)
Ch. 5 - Prob. 1SEQCh. 5 - Prob. 2SEQCh. 5 - Prob. 3SEQCh. 5 - Adjustments to the company’s records based on the...Ch. 5 - Prob. 5SEQCh. 5 - Prob. 1CDQCh. 5 - Prob. 2CDQCh. 5 - Prob. 3CDQCh. 5 - Prob. 4CDQCh. 5 - Prob. 5CDQ
Ch. 5 - Prob. 6CDQCh. 5 - Prob. 7CDQCh. 5 - Prob. 8CDQCh. 5 - Prob. 9CDQCh. 5 - Assume that Leslie Hunter, accounts payable clerk...Ch. 5 - Prob. 11CDQCh. 5 - The accounting clerk pays all obligations by...Ch. 5 - Prob. 13CDQCh. 5 - Prob. 14CDQCh. 5 - Do items reported as a credit memorandum on the...Ch. 5 - Prob. 16CDQCh. 5 - Prob. 17CDQCh. 5 - Prob. 5.1ECh. 5 - Prob. 5.2ECh. 5 - Prob. 5.3ECh. 5 - Prob. 5.4ECh. 5 - Prob. 5.5ECh. 5 - Prob. 5.6ECh. 5 - Prob. 5.7ECh. 5 - Prob. 5.8ECh. 5 - Prob. 5.9ECh. 5 - Prob. 5.10ECh. 5 - Prob. 5.11ECh. 5 - Prob. 5.12ECh. 5 - Prob. 5.13ECh. 5 - Prob. 5.14ECh. 5 - Prob. 5.15ECh. 5 - Prob. 5.16ECh. 5 - Prob. 5.17ECh. 5 - Prob. 5.18ECh. 5 - Prob. 5.19ECh. 5 - Entries for note collected by bank Accompanying a...Ch. 5 - Prob. 5.21ECh. 5 - Prob. 5.22ECh. 5 - Prob. 5.23ECh. 5 - Prob. 5.24ECh. 5 - Prob. 5.25ECh. 5 - Prob. 5.1PCh. 5 - Prob. 5.2.1PCh. 5 - Prob. 5.2.2PCh. 5 - Prob. 5.3.1PCh. 5 - Prob. 5.3.2PCh. 5 - Prob. 5.4.1PCh. 5 - Prob. 5.4.2PCh. 5 - Prob. 5.4.3PCh. 5 - Prob. 5.4.4PCh. 5 - Prob. 5.1.1MBACh. 5 - Prob. 5.1.2MBACh. 5 - Prob. 5.1.3MBACh. 5 - Prob. 5.1.4MBACh. 5 - Ratio of cash to monthly cash expenses AcelRx...Ch. 5 - Prob. 5.2.1MBACh. 5 - Prob. 5.2.2MBACh. 5 - Ratio of cash to monthly cash expenses Pacira...Ch. 5 - Ratio of cash to monthly cash expenses Pacira...Ch. 5 - Prob. 5.2.5MBACh. 5 - Prob. 5.3.1MBACh. 5 - Prob. 5.3.2MBACh. 5 - Prob. 5.3.3MBACh. 5 - Prob. 5.3.4MBACh. 5 - Prob. 5.3.5MBACh. 5 - Prob. 5.4.1MBACh. 5 - Prob. 5.4.2MBACh. 5 - Prob. 5.1CCh. 5 - Prob. 5.2CCh. 5 - Prob. 5.3CCh. 5 - Prob. 5.4CCh. 5 - Prob. 5.5.1CCh. 5 - Prob. 5.5.2CCh. 5 - Prob. 5.5.3CCh. 5 - Prob. 5.6C
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