What amount of write-offs occurred during 2014 remember the

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Reference no: EM13571912

Excerpts from Pekola Company's annual report are provided below:


(In millions)

Income Statement

2014

2013

Revenues (all on account)

$17,154

$15,998

Net income

6,606

2,296

Balance Sheet



Current Assets:



Receivables, less allowance for uncollectibles of $338 and $308, respectively

$ 3,052

$ 3,078

Footnotes



Provision for uncollectibles

$    385

$    355

1. Are estimated uncollectibles increasing or decreasing as percentage of revenues?

2. What is meant by provision for uncollectibles? Why is this reported in the notes?

3. What amount of write-offs occurred during 2014? (remember the handy household hints for solving almost any weird accounting problem)

4. What was the cash collected on accounts receivables during 2014? (are you interested in gross or net receivables for this question???)

5. What would you do with the provision for uncollectibles when preparing the statement of cash flows (indirect)? Why?

Reference no: EM13571912

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