Refer to the annual report of MCI and answer the following questions. a.What title does MCI use to describe cash on the balance sheet? What does MCI include (MCI) as “cash equivalents?”

b. What was the dollar amount of the change in MCI’s working capital from 1993 to 1994, and to what event was the change primarily attributable?

c. What policy is used by MCI to recognize revenues, and how is the uncollectible charge handled on the income statement?

d. Compute MCI’s gross accounts receivable for 1993 and 1994. Are receivables a signifi¬ cant percentage of current assets? Are total assets?

e. What percentage of MCI’s receivables are considered to be uncollectible? Did that per¬ centage change from 1993 to 1994, and if so, by how much and in what direction?