Have been tasked with answering the following questions, but was advised that my calculations are off. The project is focused on Pfizer (major drug co).
Question:
If the 10-K is available, determine what additiona disclosures are available concerning the allowance for doubtful accounts. If the necessary information is provided, what is bad debt expense as a percentage of sales?
My Answer:
Pfizer – The 10K did not reveal any disclosures with regards to allowance for doubtful accounts. I do note on the annual report- consolidated balance sheet that there is an account receivable, less allowance for doubtful accounts (2004 - $205).
http://www.sec.gov/Archives/edgar/da...06124e10vk.htm
Question:
What was the effect of the change in accounts receivable on cash flows from operations? Explain your answer.
My answer:
The effect is negative- the accounts receivable for 2004 decreased the cash flow by 465000 resulting in a remaining total cash flow from operating activities of 15,875,000. For the year 2003 the accounts receivable was 904000 revealing a differences of 439000 decreases between 2003 and 2004.
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Please advise as to where and what I am doing!