Question - You own Widgets 'R Us and are considering the future direction of your company. One choice is to fund expansion with outside financing. Your other option is to sell your stores and retire.
1. Considering the two scenarios, discuss the importance of accounts receivable, notes receivable, and investments.
2. What is the significance of current assets vs. long-term assets? Would they affect your ability to obtain a loan or sell your business? Explain.
3. The balance in your Uncollectible Accounts Expense account is quite high. What does this reveal about your business practices? How might this affect your ability to obtain a loan?