Refer to the financial statements of The Home Depot in Appendix A at the end of this book, or download the annual report from the Cases section of the Connect library.
1. Where does the company disclose the amount of its Allowance for Doubtful Accounts?
a. On the income statement.
b. On the statement of cash flows.
c. On both the income statement and balance sheet.
d. In the notes to the financial statements.
2. Compute the company’s receivables turnover ratio and days to collect for the year ended February 2, 2014.
a. 54.9 times and 6.6 days
b. 36.8 times and 9.9 days
c. 12.0 times and 30.4 days
d. 56.4 times and 6.5 days