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 of estimated uncollectables, 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 + 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 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 plus 3,867 which is 3,975,

so 108 divided by 3,975 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 going 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.