Receivables Analysis As we move through the semester, I will move the instructions for this project to the modules that we are on for the week. Introduction In the first half of the course, we focused on the financial statements and what components belonged on each of them. This chapter allows us to delve deeper into one of the components on the balance sheet - accounts receivables. Accounts receivables are generated from credit sales, thus, it is the cash that we expect to receive later from a prior sale on account. As you can imagine, sometimes customers are unable to pay or simply choose not to pay. While we understand the immediate impact that uncollectible receivables have on the operations and cash flow of a business, it can also have a devastating impact on the invest-ability of a company. This assignment requires us to analyze two companies based on data about their accounts receivables. Learning Objectives Account for uncollectible accounts using the balance sheet and income statement approaches Determine the efficiency of receivables management using financial ratios Instructions A. Use a snipping tool to copy and paste the table below into a Excel spreadsheet. Review the financial data and additional information for the two companies that you are considering investing in, Company A and B: Company A Company B Net credit sales, Dec. 31, 2019 $540,000 $620,000 Net accounts receivable, Dec. 31, 2018 $120,000 $145,000 Net accounts receivable, Dec. 31, 2019 $180,000 $175,000 Number of days' sales in receivables ratio, 2018 103 days $250,000 110 days $350,000 Net income, Dec. 31, 2018 Additional Information: Company A: Bad debt estimation percentage using the income statement method is 6%, and the balance sheet method is 10%. The $230,000 in Other Expenses includes all company expenses except Bad Debt Expense. Company B: Bad debt estimation percentage using the income statement method is 6.5%, and the balance sheet method is 8%. The $140,000 in Other Expenses includes all company expenses except Bad Debt Expense.