DC 7-1

1) Allowance for Doubtful Account (all in millions)

2010 2009
246 121

2) Net Realizable Value

2010 2009
6539 5197

3) Increase in Allowance account was due to low write off's and decrease is due to high write-off. Net in
due to high write-off. Net increase in the year is due to less doubtful accounts balance and higher net receivable value.
DC 7-3

1) Year 2010

Average
Accts Accts Accounts
Net Credit receivable receivable Receivabl
Sales (2010) (2009) e
Kelloggs 12397 1190 1093 1141.5
General Mills 14796.5 1041.6 953.4 997.5

Avereage
Length of
2) Time
Kelloggs 33.60874
General Mills 24.60633

3) For Kelloggs, the accounts receivable ratio is low(10.42) compared to General Mills (14.21) and it shows
Whereas General Mills has accounts receivable ratio of 14.21, which shows how fast the money is collec
In terms of average length of time, General Mills gets its money back in (25 days) compared to Kelloggs w
 Accounts Receivable Turnover
10.86
14.83

mpared to General Mills (14.21) and it shows for Kelloggs companies credit policies are too stringent and sales won't be lost.
21, which shows how fast the money is collected back and they can use that money for next year for other operations.
oney back in (25 days) compared to Kelloggs which is 33 days.
les won't be lost.
DC 8-1
1) Land, Buildings Building under capital lease,, Equipment, Equipment under capital lease, Construction

2) Straight Line Depreciation Method and Double Declining Balance Depreciation Method

3) Land Unlimited Life

Buildings 30 -50 years
Equipment3 - 20 years

Book
4) Value
Equipmen
Property t
Equipmen
Land 58 t 4405.6

Equipmen
t under
capital
Buildings 1653.8 lease 25

Buildings
Under Capitalize
Capital d
Lease 19.6 software 318.7
Constructi
on In
Progress 469
Total 2200.4 Total 4749.3

Accumula
ted
Depreciati
on for
property
and
equipmen
t is 3822 (million)

5) Land, Buildings and equipment were purchased for 649.9

Other assets held for sale were insignificant in the year 2010
capital lease, Construction - In Progress and Capitalized Software

tion Method