WorldBiz operates divisions around the world. Its European division-EuroBiz (EB)-has recently reported the following Information to you at WorldBiz's head office. You are trying to decide whether to direct your Internal audit staff to Investigate more closely. From the Financial Statement Notes Accounts Receivable (gross) Allowance for Doubtful Accounts Accounts Receivable, Net Year 5 $196, (7,420) 98,580 Year 4 $69, eee (8,280) 60,720 Year 3 $49,000 (5,880) 43,120 Other Information Gathered Net Sales Revenue Accounts Receivable Write-offs Bad Debt Expense Sales Discounts (2/10, n/30) $ 700, 7,800 7,000 3,900 $670,000 7,600 8,840 9,900 $ 580,000 7,eee 6,960 5,900 Required: 1-a. For each of the years, calculate the proportion of gross accounts receivable estimated to be uncollectible as allowed for in the Allowance for Doubtful Accounts. 1-b. Which year does not align with the other two? 2-a. For each of the years, calculate the proportion of Net Sales Revenue that Bad Debt Expense represents. 2-b. Which year does not align with the other two? 3-a. Did customers take greater (or lesser) advantage of sales discounts In Year 5 than In Year 4 and Year 3? 3-b. Does this Indicate customers were more (or less) likely to promptly pay their balances In Year 5 as compared to prior years? 4-a. Calculate the average days to collect In Year 5 and Year 4. 4-b. Does this measure indicate customers paid their balances faster (or slower) In Year 5 as compared to Year 4? 5-a. Indicate (yes or no) whether you should direct your Internal audit staff to Investigate EB's recelvables management practices more closely. REGIA Reg 1A REG 18 Reg 1B ROG ZA Reg 2A REGZE Reg 28 Req 3A REGIA REGIE Req 3B REGAA Reg 4A Reg 4 For each of the years, calculate the proportion of gross accounts receivable estimated to be uno Allowance for Doubtful Accounts. Year 5 Year 4 Year 3 Cross Accounts Receivables Years Yearly Years Proportion of Gross Accounts Receivables | Reg 1A Reg 1B > Req 1A Reg 1B Reg 2A Req 2B Req 3A Reg 38 Req 4A Reg 4B For each of the years, calculate the proportion of Net Sales Revenue that Bad Debt Expense represe to 1 decimal place.) Year 5 Year 4 Year 3 Proportion of Net Sales Revenue Reg 1A Reg 18 Reg 2A Reg 28 Req 3A Reg 3B Reg 4A Calculate the average days to collect in Year 5 and Year 4. (Use 365 days in a year. Round decimal place.) Year 5 Year 4 d Average days to collect days ays