=+Boeing is one of the world’s major aerospace firms, with operations involving commercial aircraft, military aircraft, missiles, satellite systems, and information and battle management systems. As of December 31, 2007, Boeing had $2,838 million of receivables involving U.S. government contracts and $1,232 million of receivables involving commercial aircraft customers, such as Delta Air Lines and United Airlines.

Should Boeing report these receivables separately in the financial statements, or combine them into one overall accounts receivable amount? Explain.

Exercises