Question
XYZ Natural Gas is the private natural gas distribution company serving the widest geographic area in Turkey with 21 distribution licenses, distributing 8.9 billion m3
XYZ Natural Gas is the private natural gas distribution company serving the widest geographic area in Turkey with 21 distribution licenses, distributing 8.9 billion m3 natural gas over a network length of 24,421 km, with a market share of 20.5%. XYZ Natural Gas, operates in 27 cities, 167 districts and villages. There is the monopoly status of BOTA in the supply of natural gas and dependence on imported gas. Using the information given below, there is an increase in the company's trade recivables which increases the liquidity risk.
At 31 December 2017 and 2016, trade receivables to third parties comprised the following:
| 31 December 2017 | 31 December 2016 |
Trade receivables |
677,158,715 |
222,049,699 |
Receivables from sale of subsidiary (*) | 81,434,843 | -- |
Doubtful receivables | 9,233,263 | 25,744,460 |
Allowance for doubtful receivables (-) | (9,233,263) | (25,744,460) |
Unearned credit finance charges (-) | (2,549,317) | (2,931,279) |
Income accruals | -- | 175,779 |
Other receivables | 3,518,851 | 402,746 |
Total | 759,563,092 | 219,696,945 |
true or false?
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