Refer to the financial statements of The Home Depot in Appendix A at the end of this book.

1. Where does the company disclose the amount of its Allowance for Doubtful Accounts?

a. On the income statement.
b. On the statement of cash flows.
c. On both the income statement and balance sheet.
d. In the notes to the financial statements.

2. Compute the company’s receivables turnover ratio and days to collect for the year ended January 29, 2017.

a. 46.6 times and 7.8 days
b. 7.5 times and 48.7 days
c. 12.2 times and 30.0 days
d. 48.3 times and 7.6 days