Internet/Financial questions

2. The allowance for bad debts at the end of 1998 was $974 million, or approximately 5.1 percent.

3. In the Analysis of Consolidated Operations, management puts for a provision for uncollectible accounts of $1,261 million for 1998 (www.sears.com/company/annrep98/

aco2.htm). It is interesting to note that on the company's consolidate statements of income, the provision for uncollectible accounts is $1,287 million (www.sears.com/

4. Net Credit Card Receivables is equal to $17,972 million and Merchandise Sales and Services is equal to $36,704 million; this results in a Days' Sales in Average Receivables of 178 days. Such a high figure is indicative of the company's commitment to its credit unit, and its belief that the credit operation is highly profitable. Sears goes to great lengths to ensure that customers have ready access to credit, including having credit available at the point of sale. In addition, Sears sells a great many high-ticket items, which are likely to be paid for with a credit card, and also encourages multiple purchases (such as multiple purchases of clothing in a single shopping trip); this also encourages the use of credit. Far from seeing its high level of AR as a weakness, Sears considers it a unique strength (www.sears.com/company/

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ortant to the company than it was five or ten years ago. BEJ did not exist ten years ago, and only started operations six years ago. At that time, it was a small organization (only four employees) and information was easily shared among the employees without having to use formal accounting techniques or procedures. As the company's revenues grew at a rapid pace, the company developed a greater need to manage its information as no one manager could "know everything." Today, the company's size forces it to rely on management accounting information. 7. As the company has grown, its management accounting information system has also grown. There are several reasons for this, the most obvious being that the company essentially sells management accounting information systems as part of its packaged software. Certainly it uses the various management accounting reports as selling features in its demonstrations as ways in which companies benefit from BEJ software. Senior management at BEJ firmly believes in the value of such information, and in its place as a management tool. As the company has grown, BEJ has been careful to implement management accounting tools in an incremental fashion so that it has the right information availab
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Some common words found in the essay are:
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Approximate Word count = 1407
Approximate Pages = 6 (250 words per page)

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