Question

212,482 Consolidated Balance Sheets - USD $ $ In Mill 2 Current Assets Cash and cash equivalents Martable securities Note 4) Accounts and notes receivable et of lowance of $278 for 2017 id $212 for 2016) Inventaries Note 6) Equipment on operating l o te 7) 8 Other current N ote 4 Note 12 at VE 9. Current held for sale Note 3) 10 Total currentes 11 Non-current Assets 12 Equity in news of nonconsolidated affiliates Note 8) 13 Property, Note) 14 Goodwill and intangi s , net (Note 11) 15 Equipment on operating net Note 7 Note 12 at VE 16 Deferred income tee 13 17 Others Note 4 Note 12 V 10 Non-current is held for sale Note 3) 19 Total non-current assets 20 Total Assets 21 Current Liabilities 22 Accounts payable principally tradel 23 Accrued a s Note 13) 24 Current liabilities held for sale Note 3) 25 Total current es 26 Non-currem Uwiities 27 Postretirement benefits other than pension Note 16 28 Pensions (Note 16) 29 Other Mote 13) 30 Non current liabilities held for sale Note 3 31 Total non curre tes 32 Total Liabilities 33 Commitments and contingencies Note 17) 34 Equity Nate 20 15 Commonwoch, 1 par value 1 Additional pa din capital 37 Retained rings 38 Accumulher com velo 39 Total eckholders' equity in Nocontrolling interests Sheet 23.333 12,415 177,615 2016

Answer 1

1. Gross Receivables = Net receivables + Allowances for bad debts (e.g. 2016 this would be $ 8,700 + $ 212 = $ 8,912 million)

2. Days Sales Receivables = (((B5+C5)/2)/B49)*365

Note – we are multiplying by 365 in the formula because our average A/R is for two years. If we have monthly or quarterly data, this factor will vary accordingly

3. Average Receivables = (B5+C5)/2

4. Accounts Receivable Turnover = ((B5+C5)/2)/B49

5. Accounts Receivable Turnover in Days is the same as Days Sales Receivable

6. Average Inventory = (B6+C6)/2

7. Inventory Turnover = ((B6+C6)/2)/B51

8. Days’ Sales Inventory = (((B6+C6)/2)/B51)/365

9. Inventory Turnover in Days is the same as Days’ Sales Inventory

10. Working Capital Ratio = B10/B25

11. Current Ratio is the same as Working Capital Ratio

12. Acid-Test Ratio =   (B3+B4+B5)/B25

13. Cash Ratio = B3/B5

14. Average Working Capital = ((B10-B25)+(C10-C25))/2

15. Sales to Working Capital = B49/(((B10-B25)+(C10-C25))/2)