Reference no: EM133004294

$ millions                                                                                              Dec 31, 2018              Dec 31, 207
Cash and cash equivalents                                                           $1,100                        $761
Trade receivables (net of allowances of $40 at 2018 and $50 at 2017) 2,262                           2,691
Other receivables (net of allowances of $47 at 2018 and $98 at 2017) 744                                   835
Inventories, net                                                                           2,592                               2,557
Other current assets                                                                       906                                676
Total current assets                                                                        7,604                            7,520
Total assets                                                                                   62,729                             62,957

Problem a. What is the common-size trade receivables, net, at year-end 2018?

i. 29.75% ii. 3.61% iii. 3.94% iv. 4.79%

Problem b. What do the customers owe the company at December 31, 2018 ($ millions)?

i. $2,262 ii. $2,302 iii. $2,222 iv. $3,006

Problem c. What does the company expect to collect from its customers as of December 31, 2017 ($ millions)?

i. $2,691 ii. $2,741 iii. $2,641 iv. $3,526

Problem d. What is the GROSS Receivables at year-end 2018 ($ millions)?

i. $2,302 ii. $3,093 iii. $3,006 iv. $2,919

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

i. 1.77% ii. 3.85% iii. 1.80% iv. 1.74%

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

i. 2018 ii. 2017