Refer to the CVS annual report in the Supplement to Chapter 1 and to the following data (in millions) for Walgreens: net sales, $72,184 and $67,420 for 2011 and 2010, respectively; accounts receivable, net, $2,497 and $2,450 for 2011 and 2010, respectively.16
1. Compute receivables turnover and days' sales uncollected for 2011 and 2010 for CVS and Walgreens. Accounts receivable in 2009 were $5,457 million for CVS and $2,496 million for Walgreens. (Round to one decimal place.)
2. Do you discern any differences in the two companies' credit policies? Explain your answer.
Text book: Principles of Accounting By Belverd Needles, Marian Powers, Susan Crosson.