“Bad Debts” or Allowance

 

 

Using the SEC 10-K for your company, answer the following questions.
Do not cut and paste from your company SEC report.
Notice line items, if they appear, for Right of Use Assets and Lease Liabilities as well as other changes in Property, Plant and Equipment (PPE) and Liabilities. Long Term Debt often funds the purchase of new fixed assets.
Discussion Requirements
Reading the notes to the financial statements, as well as the balance sheet, post information about the Accounts Receivable for your company. Who owes the company money? It is possible that your selected company does not report accounts receivable as a separate line item because the company does not generally sell on credit terms.
Search for the phrase “Bad Debts” or Allowance (for collectible accounts). When you read the balance sheet, you may see that the receivables are listed as a net of $X,XXX to show the Allowance for Bad Debts. Comment about the changes in Accounts Receivable and the Allowance for Bad Debts. Are they increasing or decreasing? How does this relate to sales (are sales increasing or decreasing)?
Property, Plants, and Equipment / PPE (Capital Assets; Fixed Assets): Comment about PPE and accumulated depreciation. How are these values changing from year to year: PPE, Accumulated Depreciation, and Net PPE?

Sample Solution

ollected from population census 2010.Every citizen is required by the law to adopt one of the religion because it becomes a mark of identification in passports and identification cards. About 207.2 million Muslims and 23 million Christians live in the Indonesia. So Islam is the first largest religion of the Indonesia and Christianity comes on the number second. Indonesian Christianity further classified into protestant and catholic and found in the Easter parts of it. Hinduism, Buddhist and Confucian also comes in the history of the Indonesia.

• Social Institutions: Sharia (Islamic law) prevails in the Indonesia and it governs the family relations. Every country establishes a limit for marriage age and in Indonesia archaeology it is 16 years for women and 19 years for boy. Forced marriages are forbidden by Islamic law but in certain parts of Indonesia, parents force their children to get married. Registration of marriage is compulsory. If the marriage is not registered then it is crime under law. If a person’s wife is unable to give birth to child, physically disabled he is entitled to have multiple wives. Islamic law gives the privilege to women to initiate divorce and after divorce man can immediately remarried but to women they have to wait for 40 days, law also impose some restrictions on the movement of women and have reserved some quotas for enhancing women participation in politics (OECD Development centre).

• Level of Industralisation: Indonesia which is ranked fourth in the world for higher population has got independence in the post 1945. Through to the 1960 Modern Industrialisation process had started. Indonesia has left behind other Asian neighbours. In this period industry has earned about third quarter of half as per capita income. In 1960-67 import was the main reason for rapid industrialisation. Since 1970 diversified industrial structure came into existence by shifting dominance of simple consumer goods and resource processing. From the mid 1980 industries started exports to enhance its growth. Major exports driver in that period were textiles, garments and footwear. Due to the major state investments a substantial growth was recorded in the heavy industries. But in early 1990, due to the higher competition in the markets, slower growth rate was recorded in the industries. In 1997 Indonesia faced crisis and between 1998 to 2004 Indonesia has elected five presidents and major modifications was recorded in the political structure. Indonesia recovered soon from the crisis. Now Indonesia has lots of jobs in service sector and technological advancements and deregulations has become the reasons for fastest growth occurrence (Aswicahyono, Hill & Narjoko 2011).

Characterstics of Indonesia Workplace: In Indonesian workplace relationship between superiors and employees are of paternal and maternal nature. Employees believe on their managers and superiors so much that they think whatever they do will be good. They are too much satisfied with the working conditions, co-

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