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

Here they report their accounts receivable, 4061 and 3867.

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 collectables, 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 4166 we could probably all do in out head, that's 2.5%.

We can do the same thing for 2011.

We would take 108 as the allowance

divided by 108 plus 3867,

which is 3975.

So 108 divided by 3975 is 2.7%.

So 3M's percent of expected uncollectibles 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.