Refer to the financial statements of Lowe’s in Appendix B at the end of this book, or download the annual report from the Cases section of the Connect library.
1. Does the company report Accounts Receivable or an Allowance for Doubtful Accounts on its balance sheet? Explain why it does or does not.
2. Based on your observations for requirement 1, describe the usefulness of the receivables turnover ratio and days to collect analyses for companies that are involved in home improvement retail sales.