Analyzing the Allowance for Uncollectible Accounts

Following is the current asset section from the Ralph Lauren Corporation balance sheet:

(in millions) March 31, 2018 April 1, 2017 Cash and cash equivalents $13046 $668.3 Shorteterm investments 699.4 684.7 Accounts receivable. net allowances of $222.2 miilion and $214.4 million 421.4 450.2 Inventories 761.3 7915 Income tax receivable 38.0 79.4 Prepaid expenses and other current assets 323.7 280.4 Total current assets $3,548.4 $2,954.5 The 2018 allowance consists of $202.5 for returns and $19.7 for uncollectible accounts. The amounts for 2017 were $202.8 and $11.6 (all in millions]. Compute the gross amount of accounts receivable for both 2018 and 2017. Compute the percentage of the allowance for uncollectible accounts relative to the gross amount of accounts receivable for each of these years. Round percentages one decimal place (i.e., 0.2538 = 25.4%) 2018 2017 Gross receivables $ 643.6 ~/ million 35 564.6 V miilion % of allowance for uncollectibles to gross AIR 34.5 X % 32.3 x %