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Finance questions

1. Your hospital has the following revenue for the month of July-September:
July $2, 000,000
Aug $ 2, 500,000
Sep $ 3,000,000

If 30% of the month's revenue is collected in the same month, 40% is collected in the second month and 30% is collected in the third month, how much of July's revenue is collected in August? and How much is collected in September?

2. An imaging center has the following information:
Revenue per test: $225
Variable cost per test: 150
Total fixed costs: $ 225.000
Calculate the total revenue dollars need to break-even.

3. A newly purchased piece of equipment shows the following:
initial cost $1,000,000
Estimated yearly cash flow 25% of the initial cost
Calculate the payback (in Years)

Solution Preview

1. July revenue collected in August would be 40% of the July sales. Collection in August = 2,000,000X40% = $800,000
July revenue collected in Sept would be 30% which is ...

Solution Summary

The solution explains some questions relating to cash collections, breakeven dollars and payback period