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Business analysis of China Changcai Company
48,938,555 22.68 394,166,271 38 22,840,315 6
1-2 Yrs 174,849,633 16.74 82,158,904 46.99 417,814,789 40 123,094,869 29
2-3 Yrs. 300,752,785 28.79 204,674,319 68.05 96,289,828 9 40,911,572 42
Over 3 Yrs. 353,183,067 33.81 255,691,144 72.4 140,529,661 13 80,082,514 57
1,044,545,372 591,462,922 1,048,800,549 266,929,270
There are some differ finding from above aging analysis,
1. The A/R with aging over 3 years in 2002 is 353,183K, but this category in the 2001 its only 140,530K, the difference 116,363K more than the maximum 96,290K which disclosed in 2001 as 2-3 years, so there are 20,074K gap.
2. For year 2002, the balance of accounts receivable keep the same lever compared with 2001, but the provision has a big jump to 591,463K from 266,929K in 2001, there are 122% sharply increase. The bed debt provision for 2002 is 411,942K (2001 139,754K)
ACCOUNTING ANALYSIS
We assume the company has the same bed debt % since 2001, as following,
Ageing 2002.12.31 % Provision % 2001.12.31 % Provision %
With in 1 yr. 215,759,887 20.66 48,938,555 22.68 394,166,271 38 89,396,910 22.68%
1-2 Yr. 174,849,633 16.74 82,158,904 46.99 417,814,789 40 196,331,169 46.99%
2-3 Yr.. 300,752,785 28.79 204,674,319 68.05 96,289,828 9 65,525,228 68.05%
Over 3 Yr. 353,183,067 33.81 255,691,144 72.4