Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show all work. P6-40. Analyzing and Interpreting Receivables and Related Ratios Following is the current asset section from Intuit Inc.'s balance sheet. Total revenues

image text in transcribedPlease show all work.

P6-40. Analyzing and Interpreting Receivables and Related Ratios Following is the current asset section from Intuit Inc.'s balance sheet. Total revenues were $4,171 million (%1,515 million in product sales and $2,656 million in service revenues and other) in 2013. Required a. What are Intuit's gross accounts receivable at the end of 2012 and 2013? b. For both 2013 and 2012, compute the ratio of the allowance for uncollectible accounts to gross receivables. What trend do you observe? c. Compute the, receivables turnover ratio and the average collection period for 2013 based on gross receivables computed in part a. Does the collection period (days sales in receivables) appear reasonable given intuits lines of business (Intuit's products include QuickBooks. TurboTax and Quicken, which it sells to consumers and small businesses)? Explain. d. Is the percentage of Intuit's allowance for uncollectible accounts to gross accounts receivable consistent with what you expect for Intuit's line of business? Explain. e. Intuit discloses the following table related to its allowance for uncollectible accounts from its 10-K. Comment on the change in the allowance account during 2011 through 2013

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Financial Institutions Management

Authors: Marcia Cornett, Anthony Saunders

1st Edition

0256253676, 9780256253672

More Books

Students also viewed these Finance questions

Question

What is a verb?

Answered: 1 week ago