Accounts Receivable and Inventory Turnover

The following data (in millions) were adapted from recent financial statements of CVS Health Corporation (CVS).

Year 2 Year 1 Sales $139,367 $126,761 Cost of goods sold 114,000 102,978 Operating income 8,799 8,037 Average accounts receivable 10,152 8,402 Average inventory 11,488 11,039 1.Compute the accounts receivable turnover for Years 1 and 2. Round to one decimal place.

Accounts Receivable Turnover Year 2 Year 1 2.Compute the number of days' sales in receivables for Years 1 and 2. Assume there are 365 days in the year, and round to the nearest day.

Number of Days' Sales

in Receivables Year 2 days Year 1 days 3.Compute the inventory turnover for Years 1 and 2. Round to one decimal place.

Inventory Turnover Year 2 Year 1 4.Compute the number of days' sales in inventory for Years 1 and 2. Assume there are 365 days in the year, and round to the nearest day.

Number of Days' Sales

in Inventory Year 2 days Year 1 days 5.Compute the return on sales for Years 1 and 2. Round to one decimal place.

Return on Sales Year 2 % Year 1 %