The following information (in millions) was taken from the December 31 financial statements of
Canadian National Railway Company:

Instructions
(a) Calculate the 2014 and 2013 current ratios.
(b) Calculate the receivables turnover and average collection period for 2014 and 2013
(c) Comment on any improvement or weakening in CN's liquidity and its management of accounts receivable.

Transcribed Image Text:

2014 2013 Accounts receivable, gross Allowance for doubtful accounts Accounts receivable, net Revenues Total current assets Total current liabilities 2012 $ 841 10 831 9,920 1,869 $ 937 $ 822 928 815 10,575 1,977 2,498 12,134 2,201