(Appendixes1) FINANCIAL ANALYSIS OF RECEIVABLES. A chain of retail stores located in Kansas and Nebraska has requested a loan from First Chicago. The balance sheet of the retail chain shows significant accounts receivable related to its in-house credit card. You are employed by First Chicago as a financial analyst and have been assigned to evaluate these receivables. You have secured the retailer’s last annual report, and the retailer has offered to respond to your requests for additional information via FAX. LO41 REQUIRED:

1. What questions concerning the quality of the retailer’s receivables can you answer on the basis of an analysis of the annual report?

2. What additional questions would you raise, and how would you go about acquiring information to answer them?