Chapter 15 Pg 544 Financial Statement Analysis McCormick and Company, Incorporat
ID: 2758544 • Letter: C
Question
Chapter 15 Pg 544
Financial Statement Analysis
McCormick and Company, Incorporated reported the following in its 2012 Annual Report:
Consolidated Balance Sheets
at November 30, 2012 (millions)
2012
2011
Trade accounts receivable, less allowances of
$4.0 for 2012 and $4.5 for 2011
$465.90
$427.00
Total current assets
$1,285.40
$1,222.90
1. What were total trade accounts receivable at November 30, 2012, before the allowance was deducted?
2. Compute the percentage increase in trade accounts receivable, less allowance, from 2011 to 2012 reported on the consolidated balance sheet.
3. What percentage of total current assets on November 30, 2012, are made up of trade accounts receivable, less allowance?
Consolidated Balance Sheets
at November 30, 2012 (millions)
2012
2011
Trade accounts receivable, less allowances of
$4.0 for 2012 and $4.5 for 2011
$465.90
$427.00
Total current assets
$1,285.40
$1,222.90
Explanation / Answer
1) Trade Receivable as on 30th November 2012 = $ 465.90 +$4 = $469.90 2) % of increase in trade receivable less allowances $ Trade Receivable less allowance as on 30 November 2012 465.9 Trade Receivable less allowance as on 30 November 2011 427.0 Increase 38.9 % increase over 2011 9.1% 3) % of Trade receivable of total Current asset as on 30th November 2012 $ Trade Receivable less allowance as on 30 November 2012 465.9 Trade Current Asset as on 30 November 2012 1,285.4 % of Trade receivable of total Current asset as on 30th November 2012 36.2% 4) % of increase in Total Current Asset $ Trade Current Asset as on 30 November 2012 1,285.4 Trade Current Asset as on 30 November 2011 1,222.9 Increase 62.5 % increase over 2011 5.1%
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