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 is 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 4,061 but

4,061 plus 105 which is 4,166.

We want 4,166 because that's the gross accounts receivable.

So, 105 divided by 4,166.

We could probably all do it in our heads, that's 2.5 %.

We could the same thing for 2011, we would take 108 as the allowance,

divided by 108 plus 3,867, which is 3,975,

so 108 divided by 3,975 is 2.7%.

So 3M's percent of expected uncollectables 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 even the, 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.