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Accounts Receivable Analysis Bassett Stores Company and Fox 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 (all numbers are in millions): Merchandise sales Credit card receivables-beginning Credit card receivables-ending Bassett Stores a. (1) Determine the accounts receivable turnover for both companies. Round to one decimal place. Fox Stores Fox $222,650 $310,250 43,551 34,674 36,359 26,696 Bassett Stores Bassett (2) Determine the days' sales in receivables for both companies. Assume there are 365 days in the year. Round intermediate calculations to the nearest whole dollar and final answers to one decimal place. Fox Stores days days b. What conclusion can be drawn regarding the two companies and their credit card policies?

Accounts Receivable Analysis Bassett Stores Company and Fox 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 (all numbers are in millions): Merchandise sales Credit card receivables-beginning Credit card receivables-ending Bassett Stores a. (1) Determine the accounts receivable turnover for both companies. Round to one decimal place. Fox Stores Fox $222,650 $310,250 43,551 34,674 36,359 26,696 Bassett Stores Bassett (2) Determine the days' sales in receivables for both companies. Assume there are 365 days in the year. Round intermediate calculations to the nearest whole dollar and final answers to one decimal place. Fox Stores days days b. What conclusion can be drawn regarding the two companies and their credit card policies?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accounts Receivable Analysis Bassett Stores Company and Fox 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 (all numbers are in millions): Bassett Merchandise sales Credit card receivables-beginning Credit card receivables-ending Bassett Stores a. (1) Determine the accounts receivable turnover for both companies. Round to one decimal place. Fox Stores Bassett Stores Fox $222,650 $310,250 43,551 34,674 36,359 26,696 (2) Determine the days' sales in receivables for both companies. Assume there are 365 days in the year. Round intermediate calculations to the nearest whole dollar and final answers to one decimal place. Fox Stores days days b. What conclusion can be drawn regarding the two companies and their credit card policies?
Transcribed Image Text:Accounts Receivable Analysis Bassett Stores Company and Fox 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 (all numbers are in millions): Bassett Merchandise sales Credit card receivables-beginning Credit card receivables-ending Bassett Stores a. (1) Determine the accounts receivable turnover for both companies. Round to one decimal place. Fox Stores Bassett Stores Fox $222,650 $310,250 43,551 34,674 36,359 26,696 (2) Determine the days' sales in receivables for both companies. Assume there are 365 days in the year. Round intermediate calculations to the nearest whole dollar and final answers to one decimal place. Fox Stores days days b. What conclusion can be drawn regarding the two companies and their credit card policies?
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