A chain of retail stores located in Kansas and Nebraska has requested a loan from the bank at which you work The balance sheet of the retail chain shows significant accounts receivable related to its in house credit card You have been assigned to evaluate these receivables Required 1 What questions...

1 Annual sales and the balance of accounts receivable are the basis for computing the accounts ...

A chain of retail stores located in Kansas and Nebraska has requested a loan from the bank

Question:

A chain of retail stores located in Kansas and Nebraska has requested a loan from the bank at which you work. The of the retail chain shows significant related to its in-house credit card. You have been assigned to evaluate these receivables.
Required:
1. What questions concerning the quality of these receivables can you answer by analyzing the retailer’s financial statements?
2. What additional questions would you raise, and what information would you request from the retailer to answer these questions?
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...