Reformulating allowance for doubtful accounts and bad debt expense merck & company reported the following from its 2016 financial statements. $ millions 2013 2014 2015 2016 accounts receivable, net $7,184 $6,626 $6,484 $7,018 allowance for doubtful accounts 146 153 165 195 a. compute accounts receivable gross for each year. $ millions 2013 2014 2015 2016 accounts receivable, gross answer 7,330 answer 6,779 answer 6,649 answer 7,213 b. determine the percentage of allowance to gross account receivables for each year. round answers to two decimal places (ex: 0.02345 = 2.35%). 2013 2014 2015 2016 % allowance answer 1.99 answer 2.26 answer 2.48 answer 2.7

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.