Shaw's Financial Statements for fiscal years 2012 to 2014.

Years:	2014	2013	2012
Operating revenues	$5,241	$5,142	$4,998
Cash	637	422	427
Accounts Receivable (gross)	525	513	461
Allowance for doubtful accounts	32	27	28
Inventories	119	96	102
Other Current Assets	73	72	89

Total current liabilities

1,396

2,205

1,595

Additional Details about Shaw's receivables:

Bad Debt Expense (or provision for doubtful accounts, as Shaw calls it) of $38 (2013, $26; 2012, $30) is included in operating, general, and administrative expenses. Shaw writes off uncollectible accounts receivable against the allowance account based on the age of the account payment history.

Instructions:

a) Calculate current ratios, acid-test ratios, receivables turn-over ratios, and average collection periods for fiscal 2014 and 2013. Comment on Shaw's liquidity for each of the years.

b) Based on information provided, calculate amount of accounts receivable that is written off in 2014.

c) Shaw indicates in its notes to the financial statements that it reduces the risk of uncollectible accounts by billing in advance of providing service. How does billing in advance of providing service reduce the risk of uncollectible accounts?