Use yahoo finance (or an alternate appropriate source) to locate and review the company's financial statements (balance sheet, income statement and statement of cash flows) and overall company information from the most recent prior 2 (two) reported fiscal years.

Company: CVS Health Corporation

1.Review and discuss the approaches the company has/uses of the following, in 1 paragraph each. You should consider the latest data available for this section.

• Inventory – Does the company use the periodic or perpetual inventory system (how can you know)? What inventory costing method does it use? Why are these choices advantageous to the company?
• Accounts Receivable – What is the average collection period of what is owed by customers (you may have to calculate this)? How does the company handle uncollectible accounts?
• Depreciation – What method does it use for its long-term assets (PP&E)? What benefits might this provide?

 

Transcribed Image Text:

CVS Health Corporation (CVS) NYSE - Nasdaq Real Time Price. Currency in USD 86.24 -1.08 (-1.24%) As of 12:46PM EDT. Market open. Summary Add to watchlist Company Outlook + Chart Conversations Show: Income Statement Balance Sheet Cash Flow Statistics Visitors trend 2W ↑ 10W ↑ 9M ↑ Historical Data Profile Financials Analysis Op Annual Quarterly Down CVS Health Corporation (CVS) NYSE - Nasdaq Real Time Price. Currency in USD 86.24 -1.08 (-1.24%) As of 12:46PM EDT. Market open. Summary Add to watchlist Company Outlook + Chart Conversations Show: Income Statement Balance Sheet Cash Flow Statistics Visitors trend 2W ↑ 10W ↑ 9M ↑ Historical Data Profile Financials Analysis Op Annual Quarterly Down

Answer rating: 100% (QA)

Inventory The company implemented a new system of inventory valuation called the perpetua... View the full answer