Question: In a recent annual report, Office Depot, Inc. notes that the company entered into an agreement to sell all of its credit card program receivables

In a recent annual report, Office Depot, Inc. notes that the company entered into an agreement to sell all of its credit card program receivables to financial service companies.
Instructions
Explain why Office Depot, a financially stable company with positive cash flow, would choose to sell its receivables.

Step by Step Solution

★★★★★

3.34 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

One possible reason Office Depot chose to sell ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

48-B-A-C-R (264).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

A Shangdong exporter entered into an agreement to sell two metric tons of Chinese peanuts with a Singapore company. Both the L/C and Sales Contract specified that the peanuts were of grade 3. When...

The following data were included in a recent annual report of Warehouse Foods. Required a. Why is a companys net income typically less than its net cash flow from operating activities? b. Why do most...

In a recent annual report the chief executive officer of Kimberly-Clark outlined his plans as follows: We have four reportable global business segments: Personal Care, Consumer Tissue, K-C...

Hello tutor Please find the attached instruction file and use the template for solving this question. If you have any question about the problem please contact me. Thanks Your Course Project...

1.With reference to the Staple and Heinz-Beech Nut cases, discuss the central issues of the anticompetitive arguments. Carefully discuss the circumstances under which mergers may be undesirable and...

19 Financial information for Buckle is presented in Appendix Beat the end of the book. 5 Dont Required: 1. What is the par value per share for the common stock? Par value pershan Book References 2....

Apple inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In milions, except number of shares which are reflected in thousands and par value) LABILITES AND SHAREHOLDERS' EQUITY: Current...

With reference to the Staple and Heinz-Beech Nut cases, discuss the central issues of the anticompetitive argumen Proposed Merger between Staples and Office Depot Leads to Concerns of Higher Prices...

I would like to get detail answers to the questions using Staples Inc. 10-K report for the fiscal year ending January 30,2015 and filed with the security exchange commission on March 4, 2016. please...

Suppose you work in strategy planning for an organization. Youve been in the organization in a variety of roles for five years. Recently, the senior leadership team determined that your organization...

The Office Automation Corporation is considering a foreign investment. The initial cash outlay will be $10 million. The current foreign exchange rate is 2 ugans = $1. Thus the investment in foreign...

Researched study on Investigating the Influence of Artificial Intelligence on Operational Efficiency

B.B. is injecting growth hormone (GH) to increase muscle mass and boost athletic performance. How would injection of GH affect levels of hormones in the GH pathway? GHRH: Fo Increase GHIH: Decrease...

Epinephrine and norepinephrine are released by the which is directly stimulated by (Choose the one answer that best completes both blanks) adrenal cortex; spinal neurons adrenal medulla; ACTH adrenal...

The growth hormone pathway performs many functions in the human body. Which of the following responses are stimulated by the growth hormone pathway during childhood? Select all correct answers....

Mr. Johnson is worried about his wife because she had a heart attack and has been in the hospital for over a month now. Over stimulation of the CRH --> ACTH--> -> Cortisol pathway by intense chronic...

ACE inhibitors are often used to treat hypertension How would taking an ACE inhibitor_____ vessel diameter and ________ urine output. increase decrease increase increase decrease Increase decrease...

a. Is the point (30 kg of coffee per day, 12 kg of nuts per day) an attainable point? Is it an efficient point? What about the point (24 kg of coffee per day, 24 kg of nuts per day)?

On January 1, 2010, Robins Inc. changed from the LIFO method of inventory pricing to the FIFO method. Explain how this change in accounting principle should be treated in the companys financial...

Using these data from the comparative balance sheet of Patillo Company, perform horizontalanalysis. December 31, 2010 December 3, 2009 Accounts receivable Inventory Total assets S 560,000 780,000...

Using the data presented in BE13-4 for Patillo Company, perform vertical analysis.

Route Canal Shipping Company has the following schedule for aging of accounts receivable: a. Calculate the percentage of amount due for each month. b. If the firm had $1,716,000 in credit sales over...

P3-6 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing an Income Statement, and Evaluating the Net Profit Margin Ratio LO3-4, 3-5, 3-6 [The following information applies to the...

4. RM1000 was deposited on 29th April 2019. Find the accumulated value if the money is withdrawn on 21st February 2020, with the simple interest rate of 6%, and consider the time is counted using:...