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 Credit card receivables-beginning Credit card receviables-ending a. Determine the (1) accounts receivable turnover and (2) the number of days' sales in receivables for both companies. Round your calculations and answers to one decimal place. Assume 365 days a year $8,500,000 820,000 880,000 $4,585,000 600,000 710,000 Xavier Lestrade 1. Accounts receivable turnover 2. Number of days' sales in receivables b. Xavier's accounts receivable turnover is much sales in receivables is Xavier is able to turn over its receivables Xavier days days than Lestrade's. The number of days' ? for Xavier than for Lestrade. These differences indicate that quickly than Lestrade. As a result, it takes time to collect its receivables.

Answer 1

EXPLANATION --