The company is showing total revenues of $22,000 million in 2016 and $21,000 million in 2015. Asset info below.

a. What proportion of gross accounts receivable does the company record as an allowance each year? Interpret the year-over-year change in the ratio.

b. Calculate the common-sized accounts receivable, net, for 2016 and 2015.

c. Compute the accounts receivable turnover for 2016 and 2015. At December 31, 2014, accounts and other receivables, gross were $1,189 million.

d. Does the accounts receivable turnover you calculated above, seem reasonable for a railway company? Explain.

Consolidated Balance Sheet Dollars in millions 2016 2015 December 31 2,225 1,794 Cash and cash equivalents Accounts receivable, net of allowance of $54 and $48 1,298 1,168 835 800 Materials and supplies 358 341 Current portion of deferred income taxes 87 Other current assets Total current assets 4,803 4,181 Property and equipment, net 52,363 50,070 14,819 14,819 Goodwill 821 1,128 Intangible assets, net Other assets 2,224 1,816 Total assets $75,030 $72,014