One week prior to labor contract negotiations, financial statements are released showing no income growth. A 10% growth was predicted. Your analysis finds that the company increased its allowance for uncollectibles from 1.5% to 4.5% of receivables. Without this change, income would have shown a 9% growth.

Does this analysis impact negotiations? Why?

Answer rating: 100% (QA)

Yes this analysis can impact labor contract negotiations The increase in the allowance for uncollect... View the full answer