Let's continue our examination of Dick's Sporting Goods (Dick's). Return to Dick's Annual Report (see the Continuing Financial Statement Analysis Problem in Chapter 2 for instructions on how to access the Annual Report). Now answer the following questions:

1. Look at Dick's balance sheet. How much cash and cash equivalents does Dick's have as of January 31, 2015, and February 1, 2014? Did it go up or down?

2. Look at management's discussion of cash and liquidity found on pages 30 through 33 in Dick's 2014 annual report. Look at footnote 1 in Dick's 2014 annual report (page 49). Why does Dick's have this much cash and why do you think the amount changed during the last year?

3. Look at Dick's balance sheet. How much accounts receivable, net of allowance for doubtful accounts (bad debt allowance), does Dick have as of January 31, 2015, and February 1, 2014?

4. Look at footnote 1 of Dick's 2014 annual, report (page 49). What does it tell you about the accounts receivable?

5. Compute Dick's current and quick ratio for the years ending January 31, 2015, and February 1, 2014. Has it changed? What do these ratios tell you about Dick's management of liquidity?

6. Compute Dick's accounts receivable turnover rate and receivable collection period for 2014. (Assume all sales are credit/debit card sales and thus are short-term receivables.) What does this ratio tell you about Dick's management of receivables?

7. Looking back over your answers to questions 1 through 6, how do you think Dick's is performing? What do you think about Dick's management of cash and receivables?