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Based on the following amounts (in millions) in Ice Box Company's consolidated balance sheets and income statements for 2020 and 2019 years Net sales Accounts
Based on the following amounts (in millions) in Ice Box Company's consolidated balance sheets and income statements for 2020 and 2019 years
Net sales Accounts receivable, net of allowances for doubtful accounts of $60 in 2020 and $90 in 2019 2020 18,200 1,980 2019 17,500 1,900 a. Calculate sales growth from 2019 to 2020. (Show your calculation like A/B-C or (A+B)/C=D etc.) [3 points] b. Calculate change in total accounts receivable from 2019 to 2020. (Show your calculation like A/B=C gr (A+B)/C=D etc.) [3 points] c. Calculate change in allowance for doubtful accounts from 2019 to 2020. And calculate allowance account, as a percentage of total receivables, (Show your calculation like A/B-C ot (A+B)/C=D etc) [3 points] d. Based on these growth rates you calculated in parts a, b and c, what can you say about the relation between the rate of change in sales, accounts receivable and the allowance for doubtful accounts? Is it consistent? Why.or why not? [3 points]
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