I can’t figure out the one’s that I am getting wrong if someone can help.
- Attachment 1
- Attachment 2
Reformulating Allowance for Doubtful Accounts and Bad Debt Expense Merck & Company reported the following from its 2016 financial statements. $ millions 2013 2014 2015 2016Accounts receivable, net $7,682 $7,121 $6,981 $7,511Allowance for doubtful accounts 154 163 175 213 a. Compute accounts receivable gross for each year. $ millions 2013 2014 201 5 2016 Accountsreceivable,gross $ 7.836 V $ 7.284 V $ 7.156 V $ 7.724 V b. Determine the percentage of allowance to gross account receivables for each year. Round answers to two decimal places (ex: 0.02345 = 2.35%). 2013 2014 2015 2016 %allowance 1.97 V % 2.24 V % 2.45 V % 2.76 V % c. Assume that we want to reformulate the balance sheet and income statement to reflect a constantpercentage of allowance to gross accounts receivables for each year. Compute the four-year average and then reformulate the balance sheet and income statements for each of the four years. Follow the processshown in Analyst Adjustments 5.2 and assume a tax rate of 35%. Four— year average of percentage of allowance to gross accounts receivables. Round answer to two decimal places (ex: 0.02345 = 2.35%) 2.35 V %