Question

At September ​24, 2016​, how much in total did customers owe Zinger​? How much did Zinger expect to collect and not to collect on September ​24, 2016​? What was the net realizable value of Zinger​, ​Inc.'s receivables on September ​24, 2016​? At September ​24, 2016​, how much in total did customers owe Zinger​? How much did Zinger expect to collect and not to collect on September ​24, 2016​? What was the net realizable value of Zinger​, ​Inc.'s receivables on September ​24, 2016​?

Zinger, Inc.

Balance Sheet (Excerpt, Adapted)

(In Millions of $)

Sep. 24, 2016

Sep. 26, 2015

Current assets:

Cash and cash equivalents

$14,208

$14,774

Short-term marketable securities

42,284

23,421

Accounts receivable, less allowance of $77 and $96, respectively

15,206

17,715

Inventories

2,030

2,258

Vendor non-trade receivables

13,350

13,324

Other current assets

8,277

15,147

Total current assets

99,311

98,758

Answer 1

1. Customers owed ZInger on 24, September 2016 = 15,206 million + 77 million = $15,283 million

(We need to consider gross amount of accounts receivable)

2. Zinger expects to collect $15,206 million. Zinger does not expect to collect $77 million.

3. The net realizable value on 24, September 2016 of receivables is $15,206 million.

(We need to consider it net of allowance for doubtful debts)