If the borrower just used the reverse mortgage proceeds to pay off the original mortgage, after ten years the reverse mortgage balance, including fees and interests, would be around $135,000. If on the other hand, you want to establish a line of credit or receive monthly income from the reverse mortgage, then you will want to have as much equity available as possible. For example, take the 65-year-old with the $300,000 home.
The average accounts receivable collection period can be calculated from the following equation: Period=DaysReceivablesTurnover{\displaystyle Period={\frac {Days}{ReceivablesTurnover}}}. In the equation, days refers to the number of days in the period being measures (usually a year or half of a year).
Answers.comÂ® is making the world better one answer at a time. Account receivable is a balance sheet item shown under current assets on the asset side, having a debit balance. It doesn't have anything to do with net income as accounts receivable is never shown in the trading profit and loss account. Only credit sales relating to such receivables during the current year forms part of the credit side of profit and loss and nit the account receivable itself.