1. What is the amount of eBay's net accounts receivable at December 31, 2016, and at December 31, 2015? 2. Financial Statement Schedule II of its 10-K report lists eBay's allowance for doubtful accounts (including authorized credits). For the two years ended December 31, 2016 and 2015, identify its allowance for doubtful accounts (including authorized credits), and then compute it as a percent of gross accounts receivable. 3. Do you believe that these percentages are reasonable based on what you know about eBay? Explain. Page 334 Charges Utled Write-offs Balance at End of Period FINANCIAL STATEMENT SCHEDULE The Financial Statement Schedule II -VALUATION AND QUALIFYING ACCOUNTS is filed as part of this Annual Report on Form 10-K. Balance st Beginning of ChargedCredited to Net Period Income Charged to Other Account in millions) Allowances for Doubtful Accounts and Authorized Credits Year Ended December 31, 2014 77 $ Year Ended December 31, 2015 66 Year Ended December 31, 2016 $ $ (79) (68) M 5 B1 $ $ Allowance for Transaction Losses Year Ended December 31, 2014 Year Ended December 31, 2015 Year Ended December 31, 2016 23 27 185 206 162 (181) 5 (198) (173) $ 27 M $ $ 5 5 $ Tax Valuation Allowance Year Ended December 31, 2014 Your Ended December 31, 2015 Your Ended December 31, 2016 164 25 41 (138) 19 16) (1) (3) 2 41 $ $ $ $ Year Ended December 31 2016 2014 fin millions, except per share amounts) 8,979 2.007 6.972 8.592 1.771 8,790 1.663 7,127 6.821 Net revenues Cost of net revenues Gross profit Operating expenses: Sales and marketing Product development General and administrative Provision for transaction losses Amortization of acquired intangible assets Total operating expenses Income from operations Interest and other net Income from continuing operations before income taxes Income tax benefit (provision) Income (los) from continuing operations Income (los) from discontinued operations, net of income taxes Net Income 2.368 1,114 900 231 34 4,647 2,325 1,328 3,651 3.634 7.286 2.267 923 1.122 271 41 4.624 2.197 209 2.400 (450) 2.442 983 889 262 75 4,651 2.476 39 2.515 (3.380) (865) 911 46 1947 (222) 1.725 7,268 Income (10) per share basic Continuing operations Discontinued operations Net Income per share basic 6.43 (0.02) 1.61 10.18) 1.43 (0.69) 0.73 0.04 $ (0,69) Income (los) per share. Gluted: Continuing operations Discontinued operations Net income per share. diluted 6.37 (0.02) 6.35 1.60 (0.18) 142 0.73 0.04 Weighted average shares 1.139 1,144 1.200 1.220 1.251 1.251 Diluted December 2016 2015 flo millions, except par value) 1.832 4.299 619 1.154 7.904 3,391 1.816 5.333 592 1.134 8.875 3.969 1.516 4501 102 4,608 276 23.847 4.451 90 365 17.755 1.451 ASSETS Current assets Cash and cash equivalents Short-term investments Accounts receivable.net Other current assets Total current assets Long-term investments Property and equipment, net Goodwill Intangible assets, net Deferred tax asset, non current Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term debt Accounts payable Accrued expenses and other current liabiles Deferred revenue Income taxes payable Total currenties Deferred and other tax librities, Long term debit Other labios Total abilities Commitments and contingencies (Note 12) Stockholders equity Common stock. $0.001 par value: 3,580 shares authorized: 1,087 and 1,164 shares outstanding Additional paid.in capital Treasury stock at cost 567 and 443 shares Retained earings Accumulated other comprehensive income Total Mockholders' equly Total abilities and stockholders equity 1.893 110 110 3.847 1.888 7.500 64 13.300 349 1,736 100 72 2.263 2.092 6.740 75 11,170 2 14,807 (19.205) 14.959 (124) 10.530 23.847 14.830 (16.203) 7.713 526 6.576 17.755