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Penney, based in Plano, Tex., has about $5.2 billion in debt, while its Eckerd drugstore chain has about $200 million in receivables not counted on the company's balance sheet.
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While Accounts Receivables does not handle the actual billing for tuition, they do close the books each year on tuition as a receivable.
The period of 45 days for receivables is not unusual, but the inventory turn-over is projected to be slow due to a need to keep higher levels than was necessary only a few years ago.
When a receivable is pledged, the borrower retains the risk that the person or firm that owes the receivable will not pay; this risk is typically passed on to the lender when factoring is involved.
"This type of receivable is not something we pursue when the alleged debtor is deceased".
Oracle recently replaced its chief financial officer and said it might have to restate some earnings reports because a significant amount of accounts receivable might not be collectible.
Some factors tack on penalties if the receivables don't pay out.
Deferring revenue by manipulating the timing of revenue or accounts receivable may not constitute tax fraud.
In our case with 70% of our sales going to large corporate customers accounts receivable isn't hard to manage because companies like Goldman Sachs and Microsoft and Oracle tend to be able to pay their bills.
At the time, Xerox assured Wall Street that the receivables shortfall did not indicate any deep-rooted problems with Xerox's internal financial controls.
Through a spokesperson, Mr. Ban said the claims, brought by a nongovernmental organization, were "not receivable" because of the United Nations' diplomatic immunity.
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