Data Analytics for Managers

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Part II: Accounts Receivable and Inventory – Diageo PLC (17 points)

Refer to the extracted financial statement information for Diageo PLC for the fiscal year ended June 30, 2013.

- Does Diageo PLC disclose its receivable balances on the balance sheet on a net or gross basis? (1 point)

- As at June 30, 2013, what was the total amount due, within the next 12 months, to Diageo PLC from all of its trade debtors? (2 points)

- As at June 30, 2013, what percentage of outstanding trade debtors, who are expected to pay within the next 12 months, does Diageo PLC not expect to collect? (2 points)

- What was the bad debt expense recorded by Diageo PLC for the fiscal year ended June 30, 2013? (2 points)

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- What was net sales for Diageo PLC for the fiscal year ended June 30, 2013? (1 point)

- Assume that all net sales relate to Diageo PLC core product and all such sales are initially made via credit. What amount of cash was collected by Diageo PLC from its customers during the fiscal year ended June 30, 2013? Please use the statement of cash flow method discussed in class to answer this question. (5 points).

- Does Diageo PLC make any provisions related to its inventory? (1 point)

- Were there any new provisions created for inventory by Diageo PLC for the fiscal year ended June 30, 2013? If so, what was the amount of that new provision? (2 points)

- What fraction of the total inventory balance of Diageo PLC as at June 30, 2013 relates to finished goods? (1 point)

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