1. What would Sears Income Statement and Balance Sheet look like in 1999 if Sears had accrued the same provision for uncollectible accounts as it had in 1998? (You may ignore any potential tax effects.) In particular, what would be: Net Income, TotalAssets, Total Liabilities and Total shareholders? equity of Sears had it accrued the same provision for uncollectible accounts as in 1998

2. Based on any information in the case that you find relevant, what do you think is an appropriate level for Sears? provision and allowance for uncollectible accounts in 1999?

Leonard Stern School of Business NEW YORK UNIVERSITY Principles of Financial Accounting Sears, Roebuck & Co. Assignment Questions 1. What would Sears Income Statement and Balance Sheet look like in 1999 if Sears had accrued the same provision for uncollectible accounts as it had in 1998? (You may ignore any potential tax effects.) In particular, what would be: Net Income, Total Assets, Total Liabilities and Total shareholders' equity of Sears had it accrued the same provision for uncollectible accounts as in 1998 2. Based on any information in the case that you find relevant, what do you think is an appropriate level for Sears' provision and allowance for uncollectible accounts in 1999