Interpreting Financial Statements: Accounts Receivable
DSE is a world leader in the application of information technology. Excerpts from its financial statements disclosed the following information (dollars in millions):
|
Years Ended December 31 |
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|
1999 |
1998 |
1997 |
|
|
Total revenues |
$8,463.9 |
$8,154.3 |
$6,998.2 |
|
Accounts receivable |
$1,325.6 |
$1,200.5 |
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Required
a. Because DSE did not separately disclose its allowance account balances,what interpretation must be given to the reported balances in accounts receivable?
b. What conclusions, based on the information available, can be drawn regarding DSE’s management of accounts receivable?