Question

Accounts Receivable Analysis Xavier Stores Company and Lestrade Stores Inc. are large retail department stores. Both companies offer credit to their customers through their own credit card operations. Information from the financial statements for both companies for two recent years is as follows (in millions): Xavier Lestrade Sales $302,950 $423,400 Credit card receivables-beginning 54,192 43,387 Credit card receivables-ending 45,242 33,405 a. Determine the (1) accounts receivable turnover and (2) the number of days' sales in receivables for both companies. Round answers to one decimal place. Assume 365 days a year. Xavier Lestrade 1. Accounts receivable turnover 2. Number of days' sales in receivables days days b. Xavier's accounts receivable turnover is than Lestrade's. The number of days' sales in receivables is for Xavier than for Lestrade. These differences indicate that Xavier is able to turn over its receivables quickly than Lestrade. As a result, it takes Xavier time to collect its receivables.

Answer 1

Xavier 10) 7661 Accoumbs Receivable Tuimover I Net zalea Average Accoumb O Receivable Lengtrade 711 423400 43387 +33405 302950 54192+45242 2.) No of days saled im 159.8 days 133. 2 days / Recevables 365 365 Alioumb Receivable Twm over 6.1 11 bo) ;) Lead :) More i) Less iv) more