Financial accounting
Requirements
Based on the financial information provided on the next page, what is Leggett & Platt, Inc.’s gross amount of receivables at the end of 2016 and 2015?
Compute the common-size amount for gross accounts receivable, for both years (to common-size a balance sheet item, it is expressed as a percentage of total assets). Interpret the year-over-year change in this ratio.
Compute the allowance for doubtful accounts to gross accounts receivable, for both years. Interpret the year-over-year change in this
Based on the ratios you calculated, form an opinion about the quality of the company’s accounts
How can companies use accounts receivables to shift income between financial accounting periods? Explain why managers engage in this sort of activity. Discuss how companies would justify such income shifting choices to the external
Solution preview for the order on financial accounting
APA
658 words