Reference no: EM132843533

Question - Analyzing the Allowance for Uncollectible Accounts

Following is the current asset section from the Mondelez balance sheet.

$ in Millions	Dec 2018	Dec 2017
Cash	880	609
Trade receviables*	1810	2153
Other receivables**	595	668
Inventories, net	2074	2046
Other current assets	725	541
Total current assets	6084	6017
Total assets	50183	50366

* (net of allowances of $32 at 2018 and $40 at 2017)

**(net of allowances of $38 at 2018 and $78 at 2017)

Q1. What is the common size trade receivables, net, at year end 2018?

i. 29.75% - correct or incorrect

ii. 15.93% - correct or incorrect

iii. 3.61%- correct or incorrect

iv. 3.54%- correct or incorrect

Q2. What do Mondelez's customers owe the company at December 31, 2018 ($ millions)?

i. $1,810- correct or incorrect

ii. $1,842- correct or incorrect

iii.$1,778- correct or incorrect

iv. $2,405- correct or incorrect

Q3. What does Mondelez expect to collect from its customers as of December 31, 2017 ($ millions)?

i. $2,153- correct or incorrect

ii. $2,193- correct or incorrect

iii. $2,113- correct or incorrect

iv. $2,821- correct or incorrect

Q4. What is the GROSS Receivables at year end 2018 ($ millions)?

i. $1842- correct or incorrect

ii. $2475- correct or incorrect

iii. $2405- correct or incorrect

iv. $2373- correct or incorrect

Q5. What percentage of trade receivables does the company deem uncollectible as of year end 2018?

i. 1.77%- correct or incorrect

ii. 2.91%- correct or incorrect

iii. 1.49%- correct or incorrect

iv. 1.74%- correct or incorrect

Q6. Based on the analysis above, in which year does the company have higher quality trade receivables?

i. 2018- correct or incorrect

ii. 2019- correct or incorrect