1)

The following percentages were computed using figures from recent annual reports of Weis Markets, a large grocery store chain, and Sprint Corporation, a provider of telecommunication services.

	Weis		Sprint
Allowance for doubtful accounts as a percentage of net sales	0.06	%	0.59	%
Accounts receivable as a percentage of net sales	2.5		6.6

Why are Sprint's percentages so much larger than Weis Markets' percentages? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

check all that apply

• Sprint Corporation generates a large volume of credit sales from individuals.unanswered
• Sales made on account by grocery chains are often to individuals.unanswered
• Larger percentage of sales made by Weis, are cash sales.unanswered
• All sales of Sprint Corporation are made on account.unanswered
• Sprint Corporation generates a large volume of credit sales from institutional customers.unanswered
• Institutional customers pose a greater credit risk than individuals.

2)

The Home Depot, Inc., financial statements appear in Appendix A. Use these statements to answer the following questions:

a-1. What is the total dollar value of the companys current assets for the most current year reported?

a-2. Has that amount increased or decreased in the most current year?

b. Does the company report any investments in marketable securities?

c. Home Depot has several types of receivables which are combined which into a single receivables amount in the balance sheet. Which type of receivables comprises the largest portion of total receivables?

d. On average, for how many days do the companys accounts receivable remain outstanding before collection?

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