Refer to the CVS annual report in the Supplement to Chapter 1 and to the following data (in millions) for Walgreens: net sales, $37,508.2 and $32,505.4 for 2004 and 2003, respectively; accounts receivable, net, $1,169.1 and $1,017.8 for 2004 and 2003, respectively.

1. Compute receivable turnover and days’ sales uncollected for 2004 and 2003 for CVS and Walgreens. Accounts Receivable in 2002 were $1,019.3 million for CVS and $954.8 million for Walgreens.

2. Do you discern any differences in the two companies’ credit policies?

Explain your answer.

Ethical Dilemma Case Ethics and Uncollectible Accounts