Attached is the case analysis problems.Below you will find the note disclosure regarding Trade and other receivable from Bombardier, in 2012 and in 2014. You are also provided with the note disclosure from Rio Tinto for 2013.Read the notes carefully and then focusing on the Trade Receivables, answer the following questions.

Accounts Receivable Case Bombardier Vs. Rio Tinto Below you will find the note disclosure regarding Trade and other receivable from Bombardier, in 2012 and in 2014. You are also provided with the note disclosure from Rio Tinto for 2013. Read the notes carefully and then focusing on the Trade Receivables, answer the following questions. 1) Analyze the note disclosure from Bombardier: a. How is the allowance for uncollectible done at Bombardier in comparison to the aging receivables method described in the slide in the slides? b. Looking on the information starting in 2011 and 2014, what trends are you able to recognize? 2) Compare the methods and amounts to account for uncollectible at Rio Tinto relative to that at Bombardier. 3) What expense amount did Bombardier record in 2013 related to its receivables? Ignore the effect of foreign currency exchange rate changes 14. CASH AND CASH EQUIVALENTS Cash and cash equivalents were as follows, as at: December 31, 2014 $ 997 Cash Cash equivalents Term deposits Money market funds Cash and cash equivalents December 31, 2013 $ 1,475 796 696 2,489 762 1,160 3,397 $ $ $ January 1, 2013 916 $ 656 985 2,557 See Note 30 - Credit facilities for details on covenants related to cash and cash equivalents. 15. TRADE AND OTHER RECEIVABLES Trade and other receivables were as follows, as at: Not past due Total December 31, 2014(1)(2) Trade receivables, gross Allowance for doubtful accounts Other Total December 31, 2013(1)(2) Trade receivables, gross Allowance for doubtful accounts Other Total January 1, 2013(1)(2) Trade receivables, gross Allowance for doubtful accounts Other Total (1) (2) (3) (4) $ $ $ $ $ $ Past due but not impaired less than more than 90 days 90 days 1,453 (39) 1,414 124 1,538 $ 1,430 (44) 1,386 106 1,492 $ 1,256 (34) 1,222 89 1,311 $ $ $ $ 717 717 $ 796 796 $ 813 813 $ $ $ $ 238 238 $ 194 194 $ 204 204 $ $ $ $ (3) Impaired 381 381 $ 359 359 $ 200 200 $ $ $ $ (4) 117 (39) 78 81 (44) 37 39 (34) 5 Of which $355 million and $475 million are denominated in euros and other foreign currencies, respectively, as at December 31, 2014 ($465 million and $411 million, respectively, as at December 31, 2013 and $396 million and $356 million, respectively, as at January 1, 2013). Of which $419 million represents customer retentions relating to long-term contracts as at December 31, 2014 based on normal terms and conditions ($392 million as at December 31, 2013 and $240 million as at January 1, 2013). Of which $525 million of trade receivables relates to BT long-term contracts as at December 31, 2014, of which $376 million were more than 90 days past due ($509 million as at December 31, 2013, of which $353 million were more than 90 days past due and $335 million as at January 1, 2013, of which $190 million were more than 90 days past due). BT assesses whether these receivables are collectible as part of its risk management practices applicable to long-term contracts as a whole. Of which a gross amount of $71 million of trade receivables are individually impaired as at December 31, 2014 ($73 million as at December 31, 2013 and $34 million as at January 1, 2013). The factors that the Corporation considers to classify trade receivables as impaired are as follows: the customer is in bankruptcy or under administration, payments are in dispute, or payments are in arrears. Further information on financial risk is provided in Note 32 - Financial risk management. 140 BOMBARDIER INC. FINANCIAL REPORT - FISCAL YEAR ENDED DECEMBER 31, 2014 Allowance for doubtful accounts - Changes in the allowance for doubtful accounts were as follows, for fiscal years: Balance at beginning of year Provision for doubtful accounts Amounts written-off Recoveries Effect of foreign currency exchange rate changes Balance at end of year 2014 (44) (5) (1) 8 3 (39) $ $ $ $ 2013 (34) (13) 3 3 (3) (44) Off-balance sheet factoring facilities In the normal course of its business, BT has factoring facilities to which it can sell, without credit recourse, qualifying trade receivables. Trade receivables of 974 million ($1,183 million) were outstanding under such facilities as at December 31, 2014 (1,084 million ($1,495 million) as at December 31, 2013 and 886 million ($1,169 million) as at January 1, 2013). Trade receivables of 1,287 million ($1,712 million) were sold to these facilities during fiscal year 2014 (1,213 million ($1,611 million) during fiscal year 2013). 16. INVENTORIES Inventories were as follows, as at: Aerospace programs Long-term contracts Production contracts Cost incurred and recorded margins Less: advances and progress billings December 31, 2014 $ 4,600 December 31, 2013 $ 4,847 7,369 (5,558) 1,811 7,064 (5,406) 1,658 5,387 (4,014) 1,373 310 (17) 293 1,266 7,970 420 (19) 401 1,328 8,234 408 (15) 393 1,429 7,540 Service contracts Cost incurred and recorded margins Less: advances and progress billings Finished products(1) $ (1) $ $ $ January 1, 2013 4,345 Finished products include 1 new aircraft not associated with a firm order and 57 pre-owned aircraft, totalling $485 million as at December 31, 2014 (11 new aircraft and 43 pre-owned aircraft, totalling $535 million as at December 31, 2013 and 3 new aircraft and 74 pre-owned aircraft, totalling $551 million as at January 1, 2013). Finished products as at December 31, 2014 include $248 million of pre-owned aircraft legally sold to third parties and leased back under sale and leaseback facilities ($134 million as at December 31, 2013 and $147 million as at January 1, 2013). The related sales proceeds are accounted for as sale and leaseback obligations. The amount of inventories recognized as cost of sales totalled $16,426 million for fiscal year 2014 ($14,106 million for fiscal year 2013). These amounts include $172 of write-downs for fiscal year 2014 ($147 million for fiscal year 2013). An additional write-down of $21 million is recognized in special items for fiscal year 2014 ($24 million for fiscal year 2013). See Note 8 - Special items for more details. Under certain contracts, title to inventories is vested to the customer as the work is performed, in accordance with contractual arrangements and industry practice. In addition, in the normal course of business, the Corporation provides performance bonds, bank guarantees and other forms of guarantees to customers, mainly in BT, as security for advances received from customers pending performance under certain contracts. In accordance with industry practice, the Corporation remains liable to the purchasers for the usual contractor's obligations relating to contract completion in accordance with predetermined specifications, timely delivery and product performance. BOMBARDIER INC. FINANCIAL REPORT - FISCAL YEAR ENDED DECEMBER 31, 2014 - NOTES 141 PDF DE REFERENCE SEULEMENT REFERENCE PDF ONLY 14 NE PAS UTILISER EN PREPRESSE DO NOT USE FOR PREPRESS CASH AND CASH EQUIVALENTS Cash and cash equivalents were as follows, as at: December 31 2012 $ Cash 1,255 December 31 2011 $ 1,091 February 1 2011 $ 1,529 Cash equivalents Term deposits 656 750 832 Money market funds 985 1,531 1,834 Cash and cash equivalents $ 2,896 $ 3,372 $ 4,195 See Note 30 - Credit facilities for details on covenants related to cash and cash equivalents. 15 TRADE AND OTHER RECEIVABLES Trade and other receivables were as follows, as at: Past due but not impaired3 Not past due as at Total less than 90 days more than 90 days Impaired4 December 31, 20121 2 , Trade receivables, gross $ 1,443 $ (34) Allowance for doubtful accounts 1,409 855 $ - 295 $ - 254 $ 39 (34) - $ 855 $ 295 $ 254 $ 5 $ 928 $ 205 $ 162 $ 46 116 Other Total $ 1,525 $ 1,341 December 31, 20111 2 , Trade receivables, gross (42) Allowance for doubtful accounts 1,299 Other - - (42) - $ 928 $ 205 $ 162 $ 4 $ 846 $ 183 $ 211 $ 53 109 Total $ 1,408 $ 1,293 February 1, 20111 Trade receivables, gross (52) Allowance for doubtful accounts 1,241 Other - $ 846 - $ 183 (52) - $ 211 $ 1 136 Total $ 1,377 1 Of which $389 million and $551 million are denominated in euros and other foreign currencies, respectively, as at December 31, 2012 ($415 million and $349 million, respectively, as at December 31, 2011 and $472 million and $393 million, respectively, as at February 1, 2011). 2 Of which $240 million represents customer retentions relating to long-term contracts as at December 31, 2012 based on normal terms and conditions ($172 million as at December 31, 2011). 3 Of which $480 million of trade receivables relates to BT long-term contracts as at December 31, 2012, of which $244 million were more than 90 days past due ($272 million as at December 31, 2011 of which $137 million was more than 90 days past due and $330 million as at February 1, 2011, of which $196 million was more than 90 days past due). BT assesses whether these receivables are collectible as part of its risk management practices applicable to long-term contracts as a whole. 4 Of which a gross amount of $34 million in trade receivables are individually impaired as at December 31, 2012 ($39 million as at December 31, 2011 and $45 million as at February 1, 2011). 164 BOMBARDIER INC. Annual Report FISCAL Year ended December 31, 2012 21_75023_EN_7_Notes.indd | 13-03-15 | 18:57 | PAGE 25 STRATEGIC REPORT STRATEGIC REPORT 18 Trade and other receivables Total 2013 US$m Restated Non-current 2012 US$m Restated Current 2012 US$m Restated Total 2012 US$m 5 1,150 479 290 - 216 2,140 (a) Trade receivables (b) Other receivables (c) Prepayment of tolling charges to jointly controlled entities Pension surpluses (note 45) Amounts due from equity accounted units Other prepayments Current 2013 US$m 2,987 1,212 - - 136 332 4,667 2,992 2,362 479 290 136 548 6,807 - 1,301 484 154 - 326 2,265 3,292 1,475 - - 238 336 5,341 3,292 2,776 484 154 238 662 7,606 (a) At 31 December 2013, trade and other receivables are stated net of provisions for doubtful debts of US$12 million (2012: US$23 million). Amounts of US$10 million (2012: US$21 million) were impaired; the majority of these receivable more than 90 days overdue. (b) Non-current receivables at 31 December 2013 included a US$700 million (2012: US$700 million) prepayment for an intangible asset, as a result of signing the agreement for the Simandou iron ore project in 2012. (c) DIRECTORS' REPORT DIRECTORS' REPORT Non-current 2013 US$m Rio Tinto Aluminium has made certain prepayments to equity accounted units for toll processing of alumina. These prepayments will be charged to Group operating costs as processing takes place. There is no material element of trade and other receivables that is interest bearing. The fair value of current trade and other receivables, including the majority of amounts classified as non-current assets, approximates their carrying value. 2013 US$m 57 71 47 3 178 less than 30 days overdue between 30 and 60 days overdue between 60 and 90 days overdue more than 90 days overdue 2012 US$m 117 22 19 32 190 FINANCIAL STATEMENTS FINANCIAL STATEMENTS As of 31 December 2013, trade and other receivables of US$178 million (2012: US$190 million) were past due but not impaired. The ageing of these receivables is as follows: These relate to a number of customers for whom there is no recent history of default or other indicators of impairment. With respect to trade and other receivables that are neither impaired nor past due, there are no indications as of the reporting date that the debtors will not meet their payment obligations. 19 Assets and liabilities held for sale In relation to Clermont and Blair Athol, assets held for sale include: property, plant and equipment of US$807 million and other assets of US$81 million; liabilities held for sale include: provisions of US$95 million and other liabilities of US$44 million. At 31 December 2012 assets and liabilities held for sale comprised Palabora Mining Company Limited and ZAC. The sale of Palabora to a consortium comprising South African and Chinese entities led by the Industrial Development Corporation of South Africa Limited and Hebei Iron & Steel Group completed on 31 July 2013. At 31 December 2011 assets and liabilities held for sale comprised ZAC. PRODUCTION, RESERVES AND OPERATIONS PRODUCTION, RESERVES AND OPERATIONS At 31 December 2013 assets and liabilities held for sale comprise the Group's 50.1 per cent interest in the Clermont Joint Venture (Clermont), its 71.2 per cent interest in the Blair Athol Coal project (Blair Athol), and Zululand Anthracite Colliery (ZAC), which was acquired with Rio Tinto Coal Mozambique in 2011. On 25 October 2013, Rio Tinto announced that it had reached a binding agreement to sell its interest in Clermont to GS Coal Pty Ltd, a company jointly owned by Glencore Xstrata and Sumitomo Corporation, for US$1.015 billion. The sale is conditional upon certain conditions precedent, including customary regulatory approval. On 3 October, the Rio Tinto Coal Australia managed Blair Athol Coal Joint Venture signed a conditional Sale and Purchase Agreement to transfer its interests in Blair Athol to New Emerald Coal Ltd (NEC), a subsidiary of Linc Energy Ltd. The transaction is expected to complete during the first half of 2014. Rio Tinto ceased mining at Blair Athol in November 2012. ADDITIONAL INFORMATION ADDITIONAL INFORMATION 149 149 riotinto.com/reportingcentre2013 riotinto.com/reportingcentre2013