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Accounts Receivable and Inventory Turnover The following data (in millions) were adapted from recent financial statements of CVS Health Corporation (CVS). 1. Compute the accounts
Accounts Receivable and Inventory Turnover The following data (in millions) were adapted from recent financial statements of CVS Health Corporation (CVS). 1. Compute the accounts receivable turnover for Years 1 and 2 . Round to one decimal place. 3. Compute the inventory turnover for Years 1 and 2. Round to one decimal place. 4. Compute the days' sales in inventory for Years 1 and 2. Assume there are 365 days 5. Compute the return on sales for Years 1 and 2 . Round to one decimal place. 6. All of the following are true regarding the accounts receivable and inventory analyses for CVS except : a. The management of receivables and inventories remained approximately the same in Years 1 and 2. b. The days' sales in inventory has decreased from year 1 to year 2, which is an unfavorable change. c. The days' sales in receivables remained constant between Year 1 and Year 2. d. Inventory turnover in Year 2 has increased slightly. Because the change was slight, the days' sales in inventory remained constant between Years 1 and 2. Choose the correct
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