c. Compute the allowance for doubtful accounts to gross accounts receivable, for both years. Interpret the year-over-year change in this ratio. Provide an opinion about the quality of the companys accounts receivable.

e. When do companies record goodwill and how is goodwill calculated? How should goodwill, properly recorded on the books, be written off in accordance with generally accepted accounting principles? Please go online and find a company (other than those discussed in class) that has recently written-off goodwill. Provide details about the companys write-off of goodwill.

ABC, Inc. reported net sales of $6,749.9 million in 2018 and $6,917.2 million in 2017. The asset side of the balance sheet follows. Use this information to answer the required. ABC, INCORPORATED Consolidated Balance Sheets (excerpts) (in millions) Dec. 31, 2018 Dec. 31, 2017 Current Assets Cash and cash equivalents $281.9 $ 253.2 Trade receivables, net of allowance $7.2 and $9.3, at December 31, 2018 and 2017, respectively 450.8 448.7 Other receivables, net 35.8 71.5 Total receivables, net 486.6 520.2 Inventories Finished goods 255.7 242.8 Work in process 52.6 42.6 Raw materials and supplies 245.1 241.8 LIFO reserve (33.8) (22.6) Total inventories, net 519.6 504.6 Prepaid expenses and other current assets 36.8 33.2 Total current assets 1,324.9 1,311.2 Property, plant and equipment - at cost Machinery and equipment 1,133.8 1,099.1 Buildings and other 559.4 548.2 Land 37.7 40.0 Total property, plant and equipment 1,730.9 1,687.3 Less accumulated depreciation (1,165.4) (1,146.5) Net property, plant and equipment 565.5 540.8 Other Assets Goodwill 791.3 806.1 Other intangibles, less accumulated amortization of $137.0 and $139.8 at December 31, 2018 and 2017, respectively 164.9 188.4 Sundry 137.5 117.2 Total other assets 1,093.7 1,111.7 Total assets $2,984.1 $2,963.7