According to the company s 2013 annual review Finning International Inc
According to the company’s 2013 annual review, Finning International Inc. is “the world’s largest Caterpillar equipment dealer.” The company is headquartered in Vancouver, but has operations in Western Canada, South America, and the United Kingdom and Ireland. The following information is taken from Note 4 of the financial statements in Finning’s 2013 financial report:
Required:
a. Based on the above information, what is the trend of the collectibility of the company’s receivables? Did the amount of accounts being written off increase in 2013?
b. Calculate the percentage the allowance represents of each of the age groupings in 2013. Have these percentages changed from 2012? What do these percentages tell you about Finning’s receivables after they are more than 120 days overdue?
c. Based on the above information, what was Finning’s bad debts expense for 2013?
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