The following information (in millions) was taken from the December 31 financial statements of Canadian National Railway Company:

Instructions

a. Calculate the 2017 and 2016 current ratios.

b. Calculate the receivables turnover and average collection period for 2017 and 2016.

c. Comment on any improvement or weakening in CN?s liquidity and its management of accounts receivable.

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2017 2016 2015 Accounts receivable, gross Allowance for doubtful accounts Accounts receivable, net $ 903 885 $ 1,000 16 28 875 984 13,041 2,190 3,983 878 Revenues Total current assets Total current liabilities 12,037 2,107 3,008 12,611 2,153 2,998