McCormick and Company, Incorporated reported the following in its 2012 Annual Report: Consolidated Balance Sheets at November

Question:

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 ……………………………….. $465.9…………… $427.0

Total current assets …………………………..…………..……… $1,285.4 …………. $1,222.9

Analyze:

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?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...