Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 2

Comparing Financial Information
Refer to the financial statements of Lowe's in Appendix B at the end of this book, or download the annual report from the Cases section of the text's Website at www.mhhe.com/phillips4e.
1. Does the company report Accounts Receivable or an Allowance for Doubtful Accounts in its financial statements Explain why it does or does not.
2. Based on your observations for requirement 1, describe the usefulness of the receivables turnover ratio and days to collect analyses for companies that are involved in home improvement retail sales.