May berry Enterprises has two sources of revenue. It sells advertising displays to retail firms and provides a consulting service on how to mount and use these displays. You represent a large manufacturing company that is considering purchasing May berry. You have reviewed May berry€™s most recent financial statements, excerpts of which are provided below, and are concerned about which of the two revenue sources is growing in importance for May berry. May berry€™s customers always pay for the consulting services in advance, indicating that the accounts receivable balance is associated only with sales of advertising displays.

REQUIRED:

Which of the two revenue sources is growing in importance for May berry? Support your conclusion with calculations.

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2017 2016 2015 Income statement: Revenues Balance sheet: Accounts receivable Statement of cash flows: Collections from display sales $76,000 $67,000 $89,500 29,500 32,200 35,000 41,500 43,500 39,500