Using the most current annual reports or the Forms 10-K for Pfizer, one of the world’s largest pharmaceutical manufacturers, and Walgreens, the drugstore chain, complete the requirements below. To obtain the Forms 10-K, use either the EDGAR system following the instructions in Appendix A or the companies’ websites. The annual reports can be found on the companies’ websites.

a. For each company, compute accounts receivable as a percentage of revenue. Show your computations?
b. Which company appears to be making more of its sales on account? Explain your answer.
c. Try to provide a logical explanation as to why one of these companies is making more of its sales on account that the other.

  • CreatedMay 19, 2012
  • Files Included
Post your question