Question
https://www.sec.gov/Archives/edgar/data/0001022079/000102207918000038/0001022079-18-000038-index.htmLinks to an external site. Use financial statements of Quest Diagnostics in fiscal year 2017 and answer the following questions: Balance Sheet: As of the
https://www.sec.gov/Archives/edgar/data/0001022079/000102207918000038/0001022079-18-000038-index.htmLinks to an external site.
Use financial statements of Quest Diagnostics in fiscal year 2017 and answer the following questions:
Balance Sheet:
As of the end of fiscal year 2017 (Dec 31, 2017),
1. What is the largest category of current assets held?
2. How much did customers owe the company at that point in time?
3. How much did the company expect to receive in cash ("realize") from those credit customers?
4. What proportion of currently outstanding receivables does Quest not expect to collect?
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 137 | $ 359 |
Accounts receivable, net of allowance for doubtful accounts of $269 and $265 as of December 31, 2017 and 2016, respectively | 924 | 926 |
Inventories | 95 | 82 |
Prepaid expenses and other current assets | 150 | 155 |
Assets held for sale | 0 | 9 |
Total current assets | 1,306 | 1,531 |
Property, plant and equipment, net | 1,145 | 1,029 |
Goodwill | 6,335 | 6,000 |
Intangible assets, net | 1,119 | 949 |
Investments in equity method investees | 462 | 443 |
Other assets | 136 | 148 |
Total assets | 10,503 | 10,100 |
Liabilities and Stockholders' Equity | ||
Accounts payable and accrued expenses | 1,021 | 975 |
Current portion of long-term debt | 36 | 6 |
Total current liabilities | 1,057 | 981 |
Long-term debt | 3,748 | 3,728 |
Other liabilities | 663 | 654 |
Commitments and contingencies | ||
Redeemable noncontrolling interest | 80 | 77 |
Quest Diagnostics stockholders' equity: | ||
Common stock, par value $0.01 per share; 600 shares authorized as of both December 31, 2017 and 2016; 216 shares issued as of both December 31, 2017 and 2016 | 2 | 2 |
Additional paid-in capital | 2,612 | 2,545 |
Retained earnings | 7,138 | 6,613 |
Accumulated other comprehensive (loss) income | (48) | (72) |
Treasury stock, at cost; 81 shares and 79 shares as of December 31, 2017 and 2016, respectively | (4,783) | (4,460) |
Total Quest Diagnostics stockholders' equity | 4,921 | 4,628 |
Noncontrolling interests | 34 | 32 |
Total stockholders' equity | 4,955 | 4,660 |
Total liabilities and stockholders' equity | $ 10,503 | $ 10,100 |
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