Assignment
Instructions:
o Read the case information carefully and answer all questions below. Write concisely and clearly, using your best composition skills (type allyour responses).
Task
o Based on the financial information provided on the next page, what is Leggett & Platt, Inc.'s gross amount of receivables at the end of 2016 and2015?
o Compute the common-size amount for gross accounts receivable, for both years (to common-size a balance sheet item, it is expressed as a percentage of total assets). Interpret the year-over-year change in this ratio.
o Compute the allowance for doubtful accounts to gross accounts receivable, forboth years. Interpret the year-over-year change in thisratio.
o Based on the ratios you calculated, form an opinion about the quality of thecompany's accountsreceivable.
o How can companies use accounts receivables to shift income between financial accounting periods? Explain why managers engage in this sort of activity. Discusshow companies would justify such income shifting choices to the externalauditor.
Format your assignment according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.