Let's start with the balance sheet, which is on page 48 of the 3M report.

Here they report their accounts receivable, 4,061 and 3,867.

Those are net of allowances, and they give you the allowances right here.

105 and 108.

So one of the things that we calculated in the videos was what percent of the gross

accounts receivable does the company not expect to collect, so what's

the percentage estimated on collectibles, and has that gone up or down over time.

So we can do that for 3M.

In 2012 we would take 105

divided by, not 4061, but

4061 plus 105 which is 4166.

We want 4166 because that's the gross accounts receivable,

So 105 divided by 4166, we could probably all do in our head, that's 2.5%.

We could do the same thing for 2011.

We would take 108, as the allowance,

divided by 108+3867,

which is 3975, so

108/3975 is 2.7%.

So 3M's percent of expected collectibles has gone down slightly from 2.7% to 2.5%,

which is not surprising because just by looking at the numbers here,

we can see 108 was a bigger allowance, but it was on a smaller net balance.

So the allowance has gone down at the same time that receivables have gone up.

Now we're going to look for more accounts receivable information in a second but

since we're here why don't we go ahead and take a look at inventories.