Refer to the CVS annual report in the Supplement to Chapter 5 and to the following data

Question:

Refer to the CVS annual report in the Supplement to Chapter 5 and to the following data (in millions) for Walgreens: net sales, $59,034.0 and $53,762.0 for 2008 and 2007, respectively, accounts receivable, net, $2,527.0 and $2,236.5 for 2008 and 2007, respectively.

1. Compute receivable turnover and days sales uncollected for 2008 and 2007 for CVS and Walgreens. Accounts Receivable in 2006 were $2,381.7 million for CVS and $2,062.7 million for Walgreens.

2. Do you discern any differences in the two companies’ credit policies? Explain your answer.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...