Problem
Obtain financial statements for the firms either from the company websites or from a service such as yahoo finance or google finance.
A. Compare and contrast the accounts receivable turnover and days' sales outstanding for Keurig Green Mountain (GMCR) and the casino and gaming firm Wynn Resorts (WYNN). Read the business description for information that may explain the level of each company's investment in accounts receivable.
B. Calculate the Z-score for Ford (F) over the last 3 years. What do you think has happened to its bond rating over this period?
C. When credit managers need a credit check on a small business, they often look up the Dun & Bradstreet report on the company. You can see a sample Comprehensive Report by logging on to www.dnb.com. On the basis of the report, would you be prepared to extend credit to this company? Why or why not?