Rite Aid Corporation operates retail drugstores in the United States. It is one of the country's largest retail drugstore chains with 3,333 stores in operation as of March 3, Year 3. The company's drugstores' primary business is pharmacy services. The company also sells a full selection of health and beauty alds and personal care products, seasonal merchandise, and a large private brand product line. The following condensed Information was extracted from Rite Aid's Form 10-K for the fiscal year that ended March 3, Year 3 (all dollars In thousands). Consolidated Statements of Cash Flows-Operating Activities Section Net Income Total noncash charges (credits) Changes in operating assets and liabilities: Net proceeds from accounts receivable securitization Accounts receivable Net changes in other operating assets and liabilities Net cash provided by operating activities 3/3/Year 3 $ 26,826 Year Ended 3/4/Year 2 379,715 20,000 (39,543) $1,273,006 (810,731) 180,000 (51,494) (77,853) (173,616) $309,145 $ 417,165 2/26/Year 1 $ 302,478 129,729 150,000 36,549 (100,310) $ 518,446 Consolidated Statements of Operations Revenues Costs and expenses 3/3/Year 3 $17,507,719 Year Ended 3/4/Year 2 $17,270,968 2/26/Year 1 $16,816,439 Cost of goods sold 12,791,597 12,571,860 12,202,894 Selling, general, and administrative expenses 4,370,481 4,387,421 4,127,536 Store closing and impairment charges 49,317 68,692 Interest expense 275,219 277,017 35,655 294,871 Loss on debt modifications and retirements, net 18,662 9,186 19,229 (Gain) loss on sale of assets, net (11,139) (6,462) 2,247 17,494,137 17,227,714 16,682,432 Income before income taxes Income tax benefit 13,582 (13,244) 43,254 134,007 (1,229,752) (168,471) Net income $ 26,826 $ 1,273,006 $ 302,478 Selected Data Pertaining to Accounts Receivable Year-end Accounts receivable, net Allowance for uncollectible accounts at year-end Additions to uncollectible accounts charged to costs and expenses 3/3/Year 3 Year Ended 3/4/Year 2 2/26/Year 1 $374,493 $354,949 30,246 32,336 $483,455 31,216 26,603 34,702 47,291 Accounts Receivable The Company maintains an allowance for doubtful accounts receivable based upon the expected collectibility of accounts receivable. The allowance for uncollectible accounts at March 3, Year 3, and March 4, Year 2, was $30,246 and $32,336, respectively. The Company's accounts receivable are due primarily from third-party payors (e.g., pharmacy benefit management companies, Insurance companies, or governmental agencies) and are recorded net of any allowances provided for under the respective plans. Since payments due from third-party payors are sensitive to payment criteria changes and legislative actions, the allowance is reviewed continually, and adjusted for accounts deemed uncollectible by management. The Company maintains securitization agreements with several multiseller asset-backed commercial paper vehicles ("CPVs"). Under the terms of the securitization agreements, the Company sells substantially all of its eligible third-party pharmaceutical receivables to a bankruptcy remote Special Purpose Entity (SPE) and retains servicing responsibility. The assets of the SPE are not available to satisfy the creditors of any other person, including any of the Company's affiliates. These agreements provide for the Company to sell, and for the SPE to purchase these receivables. The SPE then transfers an interest in these receivables to various CPVs. Transferred outstanding receivables cannot exceed $400,000. The amount of transferred receivables outstanding at any one time is dependent upon a formula that takes into account such factors as default history, obligor concentrations, and potential dilution ("Securitization Formula"). Adjustments to this amount can occur on a weekly basis. At March 3, Year 3, and March 4, Year 2, the total of outstanding receivables that have been transferred to the CPVs were $350,000 and $330,000, respectively. The Company has determined that the transactions meet the criteria for sales treatment in accordance with (pre-Codification) SFAS No. 140 "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities." Required: 1. Calculate cash collected from customers during fiscal Year 3. 2. Had Rite Aid not securitized receivables during Year 3, Year 2, and Year 1, what would its operating cash flows have been in each of these years? 3. Calculate pre-tax operating Income for Year 3, Year 2, and Year 1. (For all requirements, enter your answers in thousands of dollars.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate cash collected from customers during fiscal Year 3. Cash collected Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Had Rite Aid not securitized receivables during Year 3, Year 2, and Year 1, what would its operating cash flows have been in each of these years? Operating Cash Flow YR1 YR2 YR3 < Required 1 Required 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate pre-tax operating income for Year 3, Year 2, and Year 1. Pretax Operating Income YR1 YR2 YR3 Required 2 Required 3 >