FINANCIAL ANALYSIS OF RECEIVABLES 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:

. What questions concerning the quality of these receivables can you answer by analyzing the retailer’s financial statements?

. What additional questions would you raise, and what information would you request from the retailer to answer these questions?

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