Refer to CVS Corporation’s annual report in the Supplement to Chapter 1 and to Figures 1 and 2 in this chapter. Write a memorandum to your instructor briefly describing CVS’s operating cycle and financing period. This memorandum should identify the most common transactions in the operating cycle as it applies to CVS. It should refer to the importance of accounts receivable, accounts payable, and merchandise inventory in the CVS financial statements.

Complete the memorandum by explaining why the operating cycle and financing period are favorable to the company.

Comparison Case: CVS Versus Walgreens Income Statement Analysis