MGM Resorts International (MGM) owns and operates hotels and casinos including the MGM Grand and the Bellagio in Las Vegas, Nevade. As of a recent year, MGM reported accounts receivable of $712,263,000 and allowance for doubtful accounts of $128,348,000. Johnson & Johnson (JN3) manufactures and sells a wide range of healthcare products including Band-Aids and Tylenol. As of a recent year, J83 reported accounts receivable of $15,513,000,000 and allowance for doubtful accounts of $230,000,000. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for MGM. Round your answer to one decimal place. b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for J&J). Round your answer to one decimal place. c. Possible reasons for the difference in the two ratios computed in (a) and (b) include: a. Casino operators historically lose money on operations. b. Casino operators have larger accounts receivable. c Individuals who may have adequate creditworthiness could overextend themselves and lose more than they can afford if they get caught up in the

MGM Resorts International (MGM) owns and operates hotels and casinos including the MGM Grand and the Bellagio in Las Vegas, Nevade. As of a recent year, MGM reported accounts receivable of $712,263,000 and allowance for doubtful accounts of $128,348,000. Johnson & Johnson (JN3) manufactures and sells a wide range of healthcare products including Band-Aids and Tylenol. As of a recent year, J83 reported accounts receivable of $15,513,000,000 and allowance for doubtful accounts of $230,000,000. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for MGM. Round your answer to one decimal place. b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for J&J). Round your answer to one decimal place. c. Possible reasons for the difference in the two ratios computed in (a) and (b) include: a. Casino operators historically lose money on operations. b. Casino operators have larger accounts receivable. c Individuals who may have adequate creditworthiness could overextend themselves and lose more than they can afford if they get caught up in the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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