Please refer to a partial footnote from 1999 Callaway Golf Co. After long economic boom US firms were facing a major economic slowdown from 1999 and on. Some of the investors questioned Callaways accounting treatment of account receivables and inventory obsolescence. Please compute how much Callaway managed up or down their 1999 earnings compared to 1998 by analyzing account receivable and Inventory accounts.

a. Account Receivables:

b. Inventory Obsolescence:

c. Summary conclusions:

NOTE 3 SELECTED FINANCIAL STATEMENT INFORMATION (in thousands) December 31, 1999 1998 Cash and cash equivalents: Cash, interest bearing Cash, non-interest bearing $110,157 2,445 $ 41,689 3,929 $112,602 $ 45,618 Accounts receivable, net: Trade accounts receivable Allowance for doubtful accounts $ 59,543 (5,291) $ 83,405 (9,939) $ 54,252 $ 73,466 Inventories, net: Raw materials Work-in-process Finished goods $ 45,868 1,403 65.661 $102,352 1,820 81,868 112,932 (14,994) 186,040 (36,848) Reserve for obsolescence $ 97,938 $149,192 NOTE 3 SELECTED FINANCIAL STATEMENT INFORMATION (in thousands) December 31, 1999 1998 Cash and cash equivalents: Cash, interest bearing Cash, non-interest bearing $110,157 2,445 $ 41,689 3,929 $112,602 $ 45,618 Accounts receivable, net: Trade accounts receivable Allowance for doubtful accounts $ 59,543 (5,291) $ 83,405 (9,939) $ 54,252 $ 73,466 Inventories, net: Raw materials Work-in-process Finished goods $ 45,868 1,403 65.661 $102,352 1,820 81,868 112,932 (14,994) 186,040 (36,848) Reserve for obsolescence $ 97,938 $149,192