Following is the current asset section from the Kraft Iroods. Inc., balance sheet.

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a. Compute the gross amount of accounts receivable for both 2007 and 2006. Compute the percentage of the allowance for uncollectible accounts relative to the gross amount of accounts receivable for each of those years.

b. How do you interpret the change in the percentage computed in part \(a\) ?
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$ millions Cash and cash equivalents Receivables (less allowances of $94 in 2007 and $84 in 2006). Inventories Raw materials... Finished product. Total inventories.. Deferred income taxes. Other current assets.. Total current assets 2007 2006 $ 567 $ 239 5,197 3,869 1,605 1,389 2,491 2,117 4,096 3,506 575 387 302 253 $10,737 $8,254