Using the financial statements for Leons Furniture Limited and Shoppers Drug Mart Corporation in Appendixes B and

Question:

Using the for Leon’s Furniture Limited and Shoppers Drug Mart in Appendixes B and C, answer the following questions:
1. When reporting receivables, companies must disclose any unusual credit risks. Both companies include a note regarding credit risk—is either company exposed to any unusual credit risk?
2. Are the receivables reported at their gross or net realizable values?
3. Which company would you expect to be more efficient in collecting receivables? Why?
4. Compute the turnover for the past two years for both companies.
5. Which company is more efficient in collecting receivables?
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