Financial information for Buckle is presented in Appendix B at the end of the book.

Required:

1. Determine whether the trend in net sales has been increasing or decreasing for the past three years.

2. Where is accounts receivable reported? Explain why using net sales to calculate the receivables turnover ratio might not be a good indicator of a company’s ability to efficiently manage receivables for a retail company like Buckle, which typically sells clothing for cash.

3. Does Buckle indicate in the balance sheet that the company likely has an allowance for uncollectible accounts?