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).
Accounts receivable is a concept used in accounting to indicate payments due to a business. When a business sells its product on credit, the customer is invoiced and then given a set time period (often 30 days)to pay. First, determine the percentage of all receivables that each age category represents. 2  For example, if the current invoice total is $100,000 and the overall invoice total is $140,000, then current invoices account for (100,000 / 140,000) or 71 percent of all accounts.