Financial Accounting

Financial Accounting

Exercise1

Company ABC

(in thousands)

2010

2011

Cash and Cash Equivalents

$ 42,052 $ 98,694

A/R (net of doubtful accounts)

$ 325,118 $ 472,568

Inventory

$ 21,620 $ 26,218

Other Current Assets

$ 103,128 $ 139,006

Total Current Assets

$ 491,918 $ 736,486

Company XYZ

(in thousands)

2010

2011

Cash and Cash Equivalents

$ 107,070 $ 6,342

A/R (net of doubtful accounts)

$ 2,076,616 $ 2,190,236

Inventory

$ 805,294 $ 777,894

Other Current Assets

$ 636,914 $ 628,908

Total Current Assets

$ 3,625,894 $ 3,603,380

Review the current asset data presented for each company. Comment about your impressions concerning the relative composition of current assets within each company.

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