The following quote was taken from the 2015 annual report of Hewlett-Packard.
HP sells a significant portion of its products through third-party distributors and resellers and, as a result, maintains individually significant receivable balances with these parties. If the financial condition or operations of these distributors’ and resellers’ aggregated business deteriorates substantially, HP’s operating results could be adversely affected. The ten largest distributor and reseller receivable balances, which were concentrated primarily in North America and Europe, collectively represented 18% and 20% of gross accounts receivable as of October 31, 2015 and October 31, 2014, respectively. No single customer accounts for more than 10% of gross accounts receivable.

REQUIRED:
a. Why would an investor or other user of HP’s financial statements be concerned that certain individual customers represent a large portion of the receivables balance?
b. If problems arose with some of these customers, explain how it might affect HP’s financial-statements.