Appendix A presents the balance sheet of Intuit Inc. for years 2015 and 2016. Total revenues were $4,694 ($1,289 in product sales and $3,405 in service revenues and other) in 2016. Perform the following analyses using this information: a. Compute Intuit's gross accounts receivable at the end of 2015 and 2016. b. For both 2016 and 2015, compute the ratio of the allowance for uncollectable accounts to gross receivables. Comment on any trends you observe and provide a possible interpretation for them. c. Compute the receivables turnover ratio and the average collection period for 2016. 2016 2015 $ 808 $ 638 442 108 889 91 84 102 1,310 304 1,614 2,223 337 2,560 1,031 1,282 682 1,266 139 112 0 106 235 4,968 4,250 0 Consolidated Balance Sheets - USD ($) $ in Millions Current assets: Cash and cash equivalents Investments Accounts receivable, net of allowance for doubtful accounts of $51 and $45 Income taxes receivable Deferred income taxes Prepaid expenses and other current assets Current assets of discontinued operations Current assets before funds held for customers Funds held for customers Total current assets Long-term investments Property and equipment, net Goodwill Acquired intangible assets, net Long-term deferred income taxes Other assets Long-term assets of discontinued operations Total assets Current liabilities: Short-term debt Accounts payable Accrued compensation and related liabilities Deferred revenue Other current liabilities Current liabilities of discontinued operations Current liabilities before customer fund deposits Customer fund deposits Total current liabilities Long-term debt Long-term deferred revenue Other long-term obligations Long-term obligations of discontinued operations Total liabilities Commitments and contingencies Stockholders' equity: Preferred stock, $0.01 par value Authorized - 1,345 shares total; 145 shares designated Series A; 250 shares designated Series B Junior Participating Issued and outstanding - None Common stock, $0.01 par value Authorized - 750,000 shares Outstanding - 257,853 shares at July 31, 2016 and 277,706 shares at July 31, 2015 Additional paid-in capital Treasury stock, at cost Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 512 184 289 801 161 190 283 691 150 1,947 304 2,251 488 93 1,407 337 1,744 500 152 172 68 2,636 204 146 3,089 0 0 4,442 (9,939) (32) 6,687 1,161 $ 4,250 4,007 (7,675) (30) 6,027 2,332 $4,968 Appendix A presents the balance sheet of Intuit Inc. for years 2015 and 2016. Total revenues were $4,694 ($1,289 in product sales and $3,405 in service revenues and other) in 2016. Perform the following analyses using this information: a. Compute Intuit's gross accounts receivable at the end of 2015 and 2016. b. For both 2016 and 2015, compute the ratio of the allowance for uncollectable accounts to gross receivables. Comment on any trends you observe and provide a possible interpretation for them. c. Compute the receivables turnover ratio and the average collection period for 2016. 2016 2015 $ 808 $ 638 442 108 889 91 84 102 1,310 304 1,614 2,223 337 2,560 1,031 1,282 682 1,266 139 112 0 106 235 4,968 4,250 0 Consolidated Balance Sheets - USD ($) $ in Millions Current assets: Cash and cash equivalents Investments Accounts receivable, net of allowance for doubtful accounts of $51 and $45 Income taxes receivable Deferred income taxes Prepaid expenses and other current assets Current assets of discontinued operations Current assets before funds held for customers Funds held for customers Total current assets Long-term investments Property and equipment, net Goodwill Acquired intangible assets, net Long-term deferred income taxes Other assets Long-term assets of discontinued operations Total assets Current liabilities: Short-term debt Accounts payable Accrued compensation and related liabilities Deferred revenue Other current liabilities Current liabilities of discontinued operations Current liabilities before customer fund deposits Customer fund deposits Total current liabilities Long-term debt Long-term deferred revenue Other long-term obligations Long-term obligations of discontinued operations Total liabilities Commitments and contingencies Stockholders' equity: Preferred stock, $0.01 par value Authorized - 1,345 shares total; 145 shares designated Series A; 250 shares designated Series B Junior Participating Issued and outstanding - None Common stock, $0.01 par value Authorized - 750,000 shares Outstanding - 257,853 shares at July 31, 2016 and 277,706 shares at July 31, 2015 Additional paid-in capital Treasury stock, at cost Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 512 184 289 801 161 190 283 691 150 1,947 304 2,251 488 93 1,407 337 1,744 500 152 172 68 2,636 204 146 3,089 0 0 4,442 (9,939) (32) 6,687 1,161 $ 4,250 4,007 (7,675) (30) 6,027 2,332 $4,968