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Please answer the question below. Leggett & Platt, Inc. reported net sales of $3,749.9 million in 2016 and $3,917.2 million in 2015. The asset side
Please answer the question below.
Leggett & Platt, Inc. reported net sales of $3,749.9 million in 2016 and $3,917.2 million in 2015. The asset side of the balance sheet follows. Use this information to answer the required 3. LEGGETT & PLATT, INCORPORATED Consolidated Balance Sheets (excerpts) Dec. 31, 2016 Dec. 31, 2015 in millions Current Assets Cash and cash equivalents Trade receivables, net of allowance $7.2 and $9.3, at December 31, 2016 and 2015, respectively Other receivables, net $281.9 $ 253.2 450.8 35.8 486.6 448.7 71.5 520.2 Total receivables, net Inventories 255.7 52.6 245.1 Finished goods Work in process Raw materials and supplies LIFO reserve 242.8 42.6 241.8 (22.6) 504.6 33.2 1,311.2 Total inventories, net 519.6 36.8 1,324.9 Prepaid expenses and other current assets Total current assets Property, plant and equipment - at cost 1,133.8 559.4 37.7 1,730.9 (1,165.4) 565.5 1,099.1 548.2 40.0 1,687.3 (1,146.5) 540.8 Machinery and equipment Buildings and other Land Total property, plant and equipment Less accumulated depreciation Net property, plant and equipment Other Assets 791.3 806.1 Goodwil Other intangibles, less accumulated amortization of $137.0 and $139.8 at 164.9 137.5 1,093.7 $2,984.1 188.4 December 31, 2016 and 2015, respectively Sundry Total other assets Total assets 1,111.7 $2,963.7 Required a. What is the company's gross amount of receivables at the end of 2016 and 2015? b. Compute the common-size amount for gross accounts receivable, for both years. Interpret the year-over-year change in this ratio Compute the allowance for doubtful accounts to gross accounts receivable, for both years. Interpret the year- over-year change in this ratio Based on the ratios you calculated, form an opinion about the quality of the company's accounts receivable c. dStep by Step Solution
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