The Following Comparative Financial Statements for the Years Ended December

question 122

Essay

The following comparative financial statements for the years ended December 31,2012 and 2011 are provided for Air Plus Company:
$\begin{array}{llll} \text { Balanlce } & \underline { 2012 }&\underline { 2011 }\\ \text {Sheet: } \\& \text { Cash and cash equivalents } & \$ 87,000 & \$ 71,600 \\& \text { Accounts receivables, less allowance for doubtful } & \\& \text { accounts of \$ 90(2012) and \$ 82(2011) } &3,800 & 2,500 \\& \text { Notes receivable } &15,000 & 20,000 \\ \text { Income } \\ \text {Stateme } \\ \text {nt:} \\& \text {Net sale sor the year } &\$ 9,700 & \$ 8,800 \\& \text {Net income for the year } &920 & 1,050\end{array}$ Answer these questions concerning the company's receivables:
A) What is the gross anount of accounts receivable at December 31,2012 ? Whyis this amount different than the amount of receivabless shown in the 2012 column of the balance sheet?
B) What is the netrealizable valus of accounts receivable at December 31, 2012? What does this amount represent?
C) How should accounts receivable be classified on a classified balance sheet?Why?

• A) What is the gross anount of accounts receivable at December 31,2012 ? Whyis this amount different than the amount of receivabless shown in the 2012 column of the balance sheet?
• B) What is the netrealizable valus of accounts receivable at December 31, 2012? What does this amount represent?
• C) How should accounts receivable be classified on a classified balance sheet?Why?

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Definitions:

Organizational Citizenship

Voluntary behaviors by employees that contribute to the organization's effectiveness but are not formally rewarded or required.

Job Duties

Specific tasks and responsibilities that are expected to be performed by an individual holding a certain position.

Organizational Stakeholders

Individuals or groups that have an interest or stake in the success and outcomes of an organization, including employees, customers, suppliers, and investors.

Open Systems Anchor

A belief in organizational theory that emphasizes understanding organizations as open systems that interact with their environments, adaptable and influenced by external factors.