Please refer to a partial footnote from 1999 Callaway Golf Co. After long economic boom US firms were facing a major economic slowdown from 1999 and on. Some of the investors questioned Callaway's accounting treatment of account receivables and inventory obsolescence. Please compute how much Callaway managed up or down their 1999 earnings compared to 1998 by analyzing account receivable and Inventory accounts. (please refer to Dell Case) a. Account Receivables: b. Inventory Obsolescence: d. list at least 3 possible reasons why Callaway made this financial reporting decision). c. Summary conclusions (from financial reporting perspective) NOTE 3 SELECTED FINANCIAL STATEMENT INFORMATION (in thousands) December 31, 1999 1998 Cash and cash equivalents: Cash, interest bearing $110,157 Cash, non-interest bearing 2,445 $112,602 $ 41,689 3,929 $ 45,618 Accounts receivable, net: Trade accounts receivable Allowance for doubtful accounts Inventories, net: Raw materials Work-in-process Finished goods Reserve for obsolescence $ 59,543 (5,291) $ 83,405 (9,939) $ 54,252 $ 73,466 $ 45.868 $102,352 1,403 1,820 65.661 81,868 112,932 186,040 (14,994) (36,848) $ 97,938 $149,192