Purpose: To help familiarize you with the financial reporting of a real company to further your understanding of the chapter material you are learning.
This case will address the accounts receivable reflected on Bombardier Inc.’s balance sheet. We will once again refer to the annual report for Bombardier Inc. located in MyAccountingLab to answer some questions related to Bombardier Inc.’s receivables.
Requirements
1. What was the Accounts Receivable balance as of January 31, 2011? What was the Accounts Receivable balance as of January 31, 2010? Did the amount of accounts receivable increase or decrease during the year?
2. Refer to the note on Accounts Receivables (Note 4). What types of receivables are included in Accounts Receivable?
3. How much of the trade accounts receivable is not likely to be collected? How much of the trade receivables are impaired and how does the company determine impairment? How much of the receivables are past due but not impaired?