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
$8,500,000
$4,585,000
Credit card receivables—beginning
820,000
600,000
Credit card receviables—ending
880,000
710,000
a. Determine the (1) accounts receivable
turnover and (2) the number of days' sales in receivables for both
companies. Round...