Walmart and Target are two of the largest and most successful retail chains in the world. To

Question:

Walmart and Target are two of the largest and most successful retail chains in the world. To evaluate their ability to collect on credit sales, consider the following fictional information reported in their annual reports (amounts in millions).

Walmart Target Fiscal Year Ended January 31: 2017 2016 2015 2017 2016 2015 Net Sales $401,244 $374,307 $344,992 $62,894 $61,471 $57,878 Accounts Receivable, Net of Allowance 3,905 3,642 2,840 8,084 8,054 6,194

Required:

1. Calculate the receivables turnover ratios and days to collect for Walmart and Target for the years ended January 31, 2017, and 2016. (Round to one decimal place.)

2. Which of the companies is quicker to convert its receivables into cash?

3. How did the economic difficulties in 2016 to 2017 affect the accounts receivable collections?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...

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