Concepts What is an account receivable? What other names does this asset go by? How do accounts receivable differ from notes receivable? What is included in CVS' accounts receivable, net calculations? What distinguishes a current liability from other liabilities? What is CVS major current asset and current liability? Analysis For CVS Calculate receivable turnover and Day's Sales uncollected. Compare to Walgreens (for the last 5 years) and the industry average (for the current year. Comment on the increase or decrease in CVS' receivable, s give reasons for any fluctuation. Do you discern any differences in the two companies' credit policies, if so, explain. Does CVS or Walgreens factor their receivables, and how does this impact your analysis? Calculate liquidity ratios (current and quick rations) for the last five years. Compare to Walgreens (for the last 5 years) and the industry average (for the current year). Comment on the increase or decrease in CVS' liquidity, has it improved or declined? How does it compare to Walgreens, as well as the industry average?

The larger the investment you make, the easier it will be to: get money from other sources. guarantee cash flow. buy insurance. streamline your products.

An important application of regression analysis in accounting is in the estimation of cost. by collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. consider the following sample of production volumes and total cost data for a manufacturing operation. production volume (units) total cost ($) 400 4000 450 5000 550 5400 600 5900 700 6400 750 7000 compute b 1 and b 0 (to 2 decimals if necessary). b 1 b 0 complete the estimated regression equation (to 2 decimals if necessary). = + x what is the variable cost per unit produced (to 1 decimal)? $ compute the coefficient of determination (to 4 decimals). note: report r 2 between 0 and 1. r 2 = what percentage of the variation in total cost can be explained by the production volume (to 2 decimals)? % the company's production schedule shows 500 units must be produced next month. what is the estimated total cost for this operation (to 2 decimals)? $

Solomon chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 320,000 pounds of raw materials, the company generates 70,000 pounds of b7, 150,000 pounds of k6, and 100,000 pounds of x9. a standard batch costs $3,840,000 to produce. the sales prices per pound are $10, $14, and $20 for b7, k6, and x9, respectively. (a) allocate the joint product cost among the three final products using weight as the allocation base. (b) allocate the joint product cost among the three final products using market value as the allocation base. (c) allocate the joint product cost among the three final products using weight as the allocation base.