Q 1+2, please demonstrate using T (Beg-End). Thank you!

AGCO Corporation Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified Dec, 31. 2012 Dec. 31, 2011 Net income S 781.3 924.6 1,7031 243.5 302.2 3,954.7 1,406.1 390.3 40.0 131.2 607.1 1.192.4 7,721,8 $ 724.4 970.5 1,559.6 142.7 265.8 3,662.8 1,222.6 346.3 37.8 126.9 666.5 1,194.5 7.2572 Current Assets: Cash and cash equivalents Accounts and notes receivable, not of allowance for doubtful accounts of 38.1 and 36.9, respectively Inventories, net Deferred tax assets Other current assels Total current assets Property, plant and equipment, net Investment in affiliates Deferred lax assets Other assets Intangible assets, net Goodwill Total assets Current Llabilities: Current portion of long-term debt Convertible senior subordinated notes Accounts payable Accrued expenses Other current liabilities Total current liabilities Long-term debt, less current portion Pensions and postretirement health care benefits Deferred tax liabilities Other noncurrent liabilities Total liabilities Commitments and contingencles Temporary equity AGCO Corporation stockholders' equity: Common stock; $0.01 par value, 150,000,000 shares authorized, 96,815,998 and 97,194,732 shares issued and outstanding at December 31, 2012 and 2011, respectively Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total AGCO Corporation stockholders' equity Noncontrolling interests Total stockholders' equity Total liabilities, temporary equity and stockholders' equity 59.1 192.1 888.3 1,226.5 98.8 2,464.8 1,035,6 331,6 242.7 149.1 4,223.8 60.1 0 937.0 1,080.6 127.8 2,205.5 1,409.7 298.6 192.3 119.9 4,226.0 AGCO Corporation Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified 12 Months Ended Dec. 31, Dec. 31 Dec. 31, Dec. 31, 2012 2011 2010 Cash flows from operating activities: S 516.4 $ 585.3 S 220.2 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 155.6 151.9 135.9 Deferred debt issuance cost amortization 3.5 2.9 2.9 Impairment charge 22.4 0 0 0 Amortization of intangibles 49.3 21.6 18.4 Amortization of debt discount 8.7 8.2 15,3 Stock compensation 36.8 24.4 13.4 Equity in net earnings of affiliates, not of cash received (25.7) (19.0) (14.8) Deferred income tax (benefit) provision (36.4) (127.6) 2.9 Other 25.6 (1.3) 0.1 Changes in operating assets and liabilities, net of effects from purchase of businesses: Accounts and notes receivable, nel 40.6 5.4 9.9 Inventories, net (160.9) 1221.0) (60.6) Other current and noncurrent assets (71.8) (16.5) (123.9) Accounts payable (61.7) 162.3 70.6 Accrued expenses 154.5 183.5 114.9 Other current and noncurrent liabilities 9.5 (34.2) 33.5 Total adjustments 150.0 140.6 218.5 Net cash provided by operating activities 666.4 725.9 438.7 Cash flows from investing activities: Purchases of property, plant and equipment (340.5) (300.4) (167.1) Proceeds from sale of property, plant and equipment 0.9 1.5 0.9 Purchase of businesses, net of cash acquired (0.4) (1,018.0) (81.5) Investments in consolidated affiliates, net of cash acquired (20.1) (34.8) 0 Investments in unconsolidated affiliates, net (18.3) (8.31 (25.4) Restricted cash and other 3.7 (3.7) 0 0 Net cash used in investing activities (374.7) (1,363.7) (273.1) Cash flows from financing activities: Repurchase or conversion of convertible senior subordinated 0 C (161.0) notes (60.B) Proceeds from debt obligations 926.3 1,676.9 71.4 Repayments of debt obligations (1.148.8) 1826.4) (109.2) Purchases and retirement of common stock (17.6) 0 0 Proceeds from issuance of common stock 0 0.3 0.5 Payment of minimum tax withholdings on stock compensation (0.3) (2.5) (11.3) Payment of debt issuance costs (0.2) (14.8) 0 (Distribution to investments by noncontrolling interests (1.0) (1.5) 0 Net cash (used in) provided by financing activities (241.6) 671.0 (109.4) Effects of exchange rate changes on cash and cash 6.8 (28.7) equivalents 12.3 16.5 0 1.0 1.0 1,082.9 2,843.7 (479.4) 3,448.2 33.3 3,481.5 $ 7,721.8 1,073.2 2,321.6 (400.6) 2.995.2 36.0 3,031.2 57,257.2 Screenshot Page 6 of 12 Page 7 of 12 answer the 3. Compute the company's ART and Days in Receivables for 2012 question below. AGCO CORPORATION ANALYSIS OF ASSET ACCOUNTS Please note that the numbers in the financial statements and in the case questions are in millions (000,000s), except for per share amounts and except for numbers that are written out in the text of the footnotes. ART calculation Days In Receivables calculation Revenue Recognition and Accounts Receivable 1. Additional filing information indicates that the company wrote off $4.8 in bad debts during 2012. Assuming there are no recoveries of prior write-offs, make the journal entry the company made to record bad debt expense in 2012. Footnote #1 indicates that the financing terms range from 1 to 12 months, and that there is generally an interest-free period before the customer is charged interest. Why is the ART so high (and Days in AR so low), given the company's standard financing arrangements? 2. Compute the amount of cash collected from customers during 2012 Cost of Goods Sold and Inventories 4. What journal entry did the company make on December 31, 2012 to record obsolete inventory? Screenshot Page 2 of 12 Page 3 of 12 Long Lived Assets 5. What journal entry did the company make to record its goodwill impairment in 2012? AGCO Corporation Consolidated Statements of Operations (USD $) In Millions, except Per Share data, unless otherwise specified 12 Months Ended Dec. 31 Dec. 31, Dec. 31, 2012 2011 2010 6. What journal entry did the company make to record the purchase of PP&E in 2012? Assume all PP&E purchase is in cash. $ 9,962.2 7,839,0 2,123.2 1.041.2 317.1 0 22.4 49.3 693.2 57.6 34.8 600.8 137.9 462.9 53,5 516.4 $ 8,773.2 6.997.1 1,776.1 869.3 275.6 (0.7) 0 21.6 610.3 30.2 19.1 561.0 $ 6,896.6 5.637.9 1,258.7 692.1 219.6 4.4 0 18.4 324.2 33.3 16.0 274.9 104.4 170.5 24,6 Net sales Cost of goods sold Gross profit Selling, general and administrative expenses Engineering expenses Restructuring Charges Impairment charge Amortization of intangibles Income from operations Interest expense, net Other expense, net Income before income taxes and equity in net earnings of affiliates Income tax provision Income before equity in net earnings of affiliates Equity in net earnings of affiliates Net income Net loss (income) attributable to noncontrolling interests Net income attributable to AGCO Corporation and subsidiaries Net income per common share attributable to AGCO Corporation and subsidiaries: Basic (in dollars per share) Diluted (in dollars per share) Weighted average number of common and common equivalent shares outstanding: Basic in shares) Diluted in shares) 536.4 48.9 585.3 (2.0) 49.7 220.2 5.7 0.3 $ 522,1 S 583.3 $ 220.5 7. What journal entry did the company make to record the sale/disposals of PP&E in 2012? Assume all PP&E sale/disposal is in cash. $5.38 $5.30 $ 6.10 $5.95 $ 2.38 $ 2.29 97.1 98.6 95.6 98.1 92.8 98.4 Screenshot Page 4 of 12 Page 5 of 12 AGCO Corporation Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified Dec, 31. 2012 Dec. 31, 2011 Net income S 781.3 924.6 1,7031 243.5 302.2 3,954.7 1,406.1 390.3 40.0 131.2 607.1 1.192.4 7,721,8 $ 724.4 970.5 1,559.6 142.7 265.8 3,662.8 1,222.6 346.3 37.8 126.9 666.5 1,194.5 7.2572 Current Assets: Cash and cash equivalents Accounts and notes receivable, not of allowance for doubtful accounts of 38.1 and 36.9, respectively Inventories, net Deferred tax assets Other current assels Total current assets Property, plant and equipment, net Investment in affiliates Deferred lax assets Other assets Intangible assets, net Goodwill Total assets Current Llabilities: Current portion of long-term debt Convertible senior subordinated notes Accounts payable Accrued expenses Other current liabilities Total current liabilities Long-term debt, less current portion Pensions and postretirement health care benefits Deferred tax liabilities Other noncurrent liabilities Total liabilities Commitments and contingencles Temporary equity AGCO Corporation stockholders' equity: Common stock; $0.01 par value, 150,000,000 shares authorized, 96,815,998 and 97,194,732 shares issued and outstanding at December 31, 2012 and 2011, respectively Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total AGCO Corporation stockholders' equity Noncontrolling interests Total stockholders' equity Total liabilities, temporary equity and stockholders' equity 59.1 192.1 888.3 1,226.5 98.8 2,464.8 1,035,6 331,6 242.7 149.1 4,223.8 60.1 0 937.0 1,080.6 127.8 2,205.5 1,409.7 298.6 192.3 119.9 4,226.0 AGCO Corporation Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified 12 Months Ended Dec. 31, Dec. 31 Dec. 31, Dec. 31, 2012 2011 2010 Cash flows from operating activities: S 516.4 $ 585.3 S 220.2 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 155.6 151.9 135.9 Deferred debt issuance cost amortization 3.5 2.9 2.9 Impairment charge 22.4 0 0 0 Amortization of intangibles 49.3 21.6 18.4 Amortization of debt discount 8.7 8.2 15,3 Stock compensation 36.8 24.4 13.4 Equity in net earnings of affiliates, not of cash received (25.7) (19.0) (14.8) Deferred income tax (benefit) provision (36.4) (127.6) 2.9 Other 25.6 (1.3) 0.1 Changes in operating assets and liabilities, net of effects from purchase of businesses: Accounts and notes receivable, nel 40.6 5.4 9.9 Inventories, net (160.9) 1221.0) (60.6) Other current and noncurrent assets (71.8) (16.5) (123.9) Accounts payable (61.7) 162.3 70.6 Accrued expenses 154.5 183.5 114.9 Other current and noncurrent liabilities 9.5 (34.2) 33.5 Total adjustments 150.0 140.6 218.5 Net cash provided by operating activities 666.4 725.9 438.7 Cash flows from investing activities: Purchases of property, plant and equipment (340.5) (300.4) (167.1) Proceeds from sale of property, plant and equipment 0.9 1.5 0.9 Purchase of businesses, net of cash acquired (0.4) (1,018.0) (81.5) Investments in consolidated affiliates, net of cash acquired (20.1) (34.8) 0 Investments in unconsolidated affiliates, net (18.3) (8.31 (25.4) Restricted cash and other 3.7 (3.7) 0 0 Net cash used in investing activities (374.7) (1,363.7) (273.1) Cash flows from financing activities: Repurchase or conversion of convertible senior subordinated 0 C (161.0) notes (60.B) Proceeds from debt obligations 926.3 1,676.9 71.4 Repayments of debt obligations (1.148.8) 1826.4) (109.2) Purchases and retirement of common stock (17.6) 0 0 Proceeds from issuance of common stock 0 0.3 0.5 Payment of minimum tax withholdings on stock compensation (0.3) (2.5) (11.3) Payment of debt issuance costs (0.2) (14.8) 0 (Distribution to investments by noncontrolling interests (1.0) (1.5) 0 Net cash (used in) provided by financing activities (241.6) 671.0 (109.4) Effects of exchange rate changes on cash and cash 6.8 (28.7) equivalents 12.3 16.5 0 1.0 1.0 1,082.9 2,843.7 (479.4) 3,448.2 33.3 3,481.5 $ 7,721.8 1,073.2 2,321.6 (400.6) 2.995.2 36.0 3,031.2 57,257.2 Screenshot Page 6 of 12 Page 7 of 12 answer the 3. Compute the company's ART and Days in Receivables for 2012 question below. AGCO CORPORATION ANALYSIS OF ASSET ACCOUNTS Please note that the numbers in the financial statements and in the case questions are in millions (000,000s), except for per share amounts and except for numbers that are written out in the text of the footnotes. ART calculation Days In Receivables calculation Revenue Recognition and Accounts Receivable 1. Additional filing information indicates that the company wrote off $4.8 in bad debts during 2012. Assuming there are no recoveries of prior write-offs, make the journal entry the company made to record bad debt expense in 2012. Footnote #1 indicates that the financing terms range from 1 to 12 months, and that there is generally an interest-free period before the customer is charged interest. Why is the ART so high (and Days in AR so low), given the company's standard financing arrangements? 2. Compute the amount of cash collected from customers during 2012 Cost of Goods Sold and Inventories 4. What journal entry did the company make on December 31, 2012 to record obsolete inventory? Screenshot Page 2 of 12 Page 3 of 12 Long Lived Assets 5. What journal entry did the company make to record its goodwill impairment in 2012? AGCO Corporation Consolidated Statements of Operations (USD $) In Millions, except Per Share data, unless otherwise specified 12 Months Ended Dec. 31 Dec. 31, Dec. 31, 2012 2011 2010 6. What journal entry did the company make to record the purchase of PP&E in 2012? Assume all PP&E purchase is in cash. $ 9,962.2 7,839,0 2,123.2 1.041.2 317.1 0 22.4 49.3 693.2 57.6 34.8 600.8 137.9 462.9 53,5 516.4 $ 8,773.2 6.997.1 1,776.1 869.3 275.6 (0.7) 0 21.6 610.3 30.2 19.1 561.0 $ 6,896.6 5.637.9 1,258.7 692.1 219.6 4.4 0 18.4 324.2 33.3 16.0 274.9 104.4 170.5 24,6 Net sales Cost of goods sold Gross profit Selling, general and administrative expenses Engineering expenses Restructuring Charges Impairment charge Amortization of intangibles Income from operations Interest expense, net Other expense, net Income before income taxes and equity in net earnings of affiliates Income tax provision Income before equity in net earnings of affiliates Equity in net earnings of affiliates Net income Net loss (income) attributable to noncontrolling interests Net income attributable to AGCO Corporation and subsidiaries Net income per common share attributable to AGCO Corporation and subsidiaries: Basic (in dollars per share) Diluted (in dollars per share) Weighted average number of common and common equivalent shares outstanding: Basic in shares) Diluted in shares) 536.4 48.9 585.3 (2.0) 49.7 220.2 5.7 0.3 $ 522,1 S 583.3 $ 220.5 7. What journal entry did the company make to record the sale/disposals of PP&E in 2012? Assume all PP&E sale/disposal is in cash. $5.38 $5.30 $ 6.10 $5.95 $ 2.38 $ 2.29 97.1 98.6 95.6 98.1 92.8 98.4 Screenshot Page 4 of 12 Page 5 of 12