As The Management Accountant For The Tyson Company You Have Been Asked To Prepare A 2903888

As the management accountant for the Tyson Company you have been asked to prepare a financial planning model regarding collection of accounts receivable and then to perform a ?what-if? analysis regarding the assumption regarding estimated uncollectible accounts. You are provided with the following information: Collection Pattern for Credit Sales: 65% of the company’s credit sales are collected in the month of sale, 30% in the month following month of sale, and 5% uncollectible. Credit Sales: January 2013, $100,000; February 2013, $120,000; March 2013, $110,000. Required 1. What is meant by the term ?what-if” analysis? 2. Generate a spreadsheet model regarding estimated bad-debts expense under the following three conditions: 1%, 3%, 5% (base case), and 8%. Prepare an estimate of bad debts expense for each of three months, January through March, and for the quarter as a whole. 3. What is the value to Tyson Company of creating a model and then performing the ?what-if? analysis described above?