CHAPTER & ACCOUNTS RECEIVABLE . 133 April 27, 2002 July 31, 1999 $1,269 27 $1,242 Accounts receivable Allowance for doubtful accounts Net accounts receivable (in millions) July 31, 2000 July 28, 2001 $2,342 $1,754 288 $1,466 $1,336 43 $1,242 $2,299 $ 990 Required: a. Comment on the trend in Cisco's gross accounts receivable from 1999 to 2002. What factors do you think contributed to this trend? b. Compute the allowance for doubtful accounts as a percentage of gross accounts re- ceivable. Comment on your findings. c. What are some of the possible explanations for your findings in part (b)? Cite any findings that might be alarming to the financial community related to an investment in Cisco Systems. d. Assume that Cisco was being overly conservative in estimating its bad debt allowance in 2002. If actual bad debts in 2003 are not as much as expected, what effect will this have on Cisco's reported earnings in fiscal 2003