Using the Following Excerpts from the Most Recent Annual Report

question 6

Essay

Using the following excerpts from the most recent annual report of WooHoo, a high technology firm, analyze the accounts receivable and allowance for doubtful accounts.Be sure to show all calculations and write a thorough interpretation of those calculations.
$$\begin{array} {| l | r r| } \hline \text { (dollars in millions) } & 2015 & 2014 \\\hline \text { Net sales } & \$ 7,200 & \$ 6,400 \\\text { Accounts receivable - less allowance for doubtful accounts of } & \$ 1,000 & \$ 1,030 \\\$ 22 \text { at April } 30,2015 \text { and } \$ 40 \text { April } 30,2014 &\\\hline\end{array}$$ WooHoo
Valuation And Qualifying Accounts
For the Years Ended April 30, 2015, 2014 and 2013
$$\begin{array} { | l | r | r | r | r | } \hline & \begin{array} { c } \text { Balance at } \\\text { beginning of } \\\text { period }\end{array} & \begin{array} { c } \text { Charged to } \\\text { expenses }\end{array} & \text { Deductions } & \begin{array} { c } \text { Balance at } \\\text { end of period }\end{array} \\\hline \begin{array} { l } \text { Allowance for } \\\text { doubtful accounts }\end{array} & & & & \\\hline 2015 & \$ 40 & \$ 5 & \mathbf { ( \$ 2 3 ) } & \$ 22 \\\hline 2014 & \$ 51 & \$ 4 & \mathbf { ( \$ 1 5 ) } & \$ 40 \\\hline 2013 & \$ 46 & \$ 25 & \mathbf { ( \$ 2 0 ) } & \$ 51 \\\hline\end{array}$$

---

Definitions:

Thoughts

Mental processes or ideas that arise within the mind of an individual, encompassing beliefs, opinions, and reflections.

Sociability

The extent to which an individual seeks social interactions and is comfortable in social settings.

Sincere Interest

A genuine and earnest concern or curiosity in a subject or person.

Versatility

The ability to adapt or be effective in different functions, roles, or activities.