AT&T's financial statements for the 2015 and 2014 fiscal years contained the following information:
Balance Sheets ($ in millions) 2015 2014
Current assets:
Accounts receivable, net of allowances for
doubtful accounts of $704 and $454 $16,532 $14,527
Income Statements ($ in millions) 2015 2014
Revenues $146,801 $132,447
In addition, the statement of cash flows disclosed bad debt expense of $1,416 million in 2015 and $1,032 million in 2014.
Required:
1. Determine the amount of actual bad debt write-offs made during 2015.
2. Determine the amount of cash collected from customers during 2015.
3. Compute the receivables turnover ratio for 2015.

Question

Quizplus · Accepted Answer

The Answer of AT&T's financial statements for the 2015 and 2014 fiscal years contained the following information:
Balance Sheets ($ in millions) 2015 2014
Current assets:
Accounts receivable, net of allowances for
doubtful accounts of $704 and $454 $16,532 $14,527
Income Statements ($ in millions) 2015 2014
Revenues $146,801 $132,447
In addition, the statement of cash flows disclosed bad debt expense of $1,416 million in 2015 and $1,032 million in 2014.
Required:
1. Determine the amount of actual bad debt write-offs made during 2015.
2. Determine the amount of cash collected from customers during 2015.
3. Compute the receivables turnover ratio for 2015.

AT&T's Financial Statements for the 2015 and 2014 Fiscal Years