CP$6-3($Static$)$ Comparing Companies within an Industry LO$6-1,6-3$

Refer to the financial statements of Target $($Appendix B$)$ and Walmart $($Appendix C$).$

Required:

Compute the receivables turnover ratio for both companies for the most recent year. For Target, use the "Accounts and other

receivables" amounts located in Note $6($Other Current Assets$)$ for the denominator. For Walmart, use the "receivables from

transactions with customers, net" amounts located in Note $1($Reeeivables$)$ for the denominator.

What characteristic of their businesses is the main cause their receivables turnover ratios to be so high?

How do Target and Walmart account for expected or estimated customer returns?

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