Walgreen Company Case Study

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Introduction to company
Walgreen Co., is one of the largest drugstores in the United States that was founded in 1901 in Chicago, Illinois. The company’s common stock is also listed in Chicago as well as New York. Where they received their state of incorporations in 1909. Their headquarters are located in Deerfield, Illinois. The President and Chief Executive Officer is Gregory D. Wasson and the Executive Vice-President and Chief Financial Officer is Timothy R. McLevish. The company is considered publicly traded, and is listed number 35 on the Fortune 500 list. It’s fiscal year end on August, 31 of each year. Walgreen offers convenient access to house hold items, beauty products, personal items, food and a pharmacy. Also, health and wellness
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Their inventories are purchased both domestically and foreign. The company’s inventories consist of current assets reported in descending order of liquidity. The current assets that they consist of are ; cash and cash equivalents, accounts receivable, inventories and other current assets. The method that the company uses to count inventories is LIFO in perpetual method. LIFO method is last in, which is used to dispense cost to the cost of goods based on the link with the last inventory. As for the first out meaning the beginning inventory of that period will be dispensed to the ending inventory value (8.2 Choosing an accounting…show more content…
Accounts receivables are the money that is owed to a company by its debtors. (Larry, 2016). Receivable accounts that Walgreen has is trade accounts. The company use a 3 month lag when reporting accounts.

Allowance for Doubtful Accounts
The company allows returns, but they are consider immaterial and are not recorded in allowances. Based on write off percentages & specially identified receivable. At the beginning of the year in 2014 allowances increased from last year 2013 by 55 million and the year before last by 53 million 2012 . In 2013 allowances actually decreased from last year 2012 by 2 million. In 2012 had higher allowance than 2013. In 2012 allowances, had decreased overall at the end of the year with the write offs and bad debt provisions.
The company’s liabilities and contingencies are recognized on a case-by-case basis. Contingencies could have a material contrary effect on the consolidated financial statements in a future fiscal period. The contingent liabilities include, legal proceedings, securities, and class action litigation 's . Antitrust, tax, contracts and intellectual property are other
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