The following items appear (in thousands) on the January 31, 1998 and February 1, 1997 financial statements
Question:
The following items appear (in thousands) on the January 31, 1998 and February 1, 1997 financial statements of Dillard Department Stores Inc.:
January 31, February |, 1998 LOOT, Accounts receivable $1,158,682 $1,130,504 Inventory 1,784,765 1,556,958 Sales 6,631,752 6,227,585 Cost of goods sold 4,393,291 4,124,765 Suppose Dillard’s wants to arrange with its supplier to pay for merchandise 90 days after the purchase.
Required: Based on the above information, would you, as a supplier, feel confident about Dillard’s’ ability to pay you in 90 days? Justify your answer. If you were making the decision to grant Dillard’s credit, what other information would you like to know about Dillard Department Stores Inc.?
Step by Step Answer:
Accounting Information For Business Decisions
ISBN: 9780030224294
1st Edition
Authors: Billie Cunningham, Loren A. Nikolai, John Bazley