Refer to the financial statements of The Home Depot in Appendix A.

http://lectures.mhhe.com/connect/0078025915/appendix_a.pdf

1.

Where does the company disclose the amount of its Allowance for Doubtful Accounts? (Hint: The company refers to its Allowance for Doubtful Accounts as a Valuation Reserve related to Accounts Receivable.)

	On the statement of cash flows.
	On both the income statement and balance sheet.
	On the income statement.
	In the notes to the financial statements.

2.

Compute the companys receivables turnover ratio and days to collect for the year ended February 2, 2014.

	56.4 times and 6.5 days
	54.9 times and 6.6 days
	36.8 times and 9.9 days
	12.0 times and 30.4 days