BlackBerry Limited (formerly Research In Motion Ltd.) is known for its BlackBerry hand-held devices and the Playbook tablet. Based in Waterloo, Ontario, its shares trade on the Toronto Stock Exchange and the NASDAQ. The following information was taken from the 2014 annual report (in U.S. $ millions):

Required:
a. Is the balance in BlackBerry€™s accounts receivable at the end of 2014 significantly higher or lower than it was at the end of 2013? Quantify your answer and ensure that you consider the company€™s sales trends.
b. Has the company€™s accounts receivable turnover and average collection periods changed significantly over the prior year? Use the balance of accounts receivable at each year end for the account receivable turnover calculation, rather than average balances.
c. What possible explanations can you suggest for the change in accounts receivable turnover?

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2013 2014 6,813 $ 972 Revenues $11,073 Accounts receivable, net of allowance for doubtful accounts of $17 in 2014 and $17 in 2013 2,352