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 $219,000 $306,600 Credit card receivables-beginning 40,352 63,501 Credit card receivables-ending 33,688 48,891 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 fill in the blank 1 fill in the blank 2 2. Number of days' sales in receivables fill in the blank 3 days fill in the blank 4 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.
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 $219,000 $306,600 Credit card receivables-beginning 40,352 63,501 Credit card receivables-ending 33,688 48,891 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 fill in the blank 1 fill in the blank 2 2. Number of days' sales in receivables fill in the blank 3 days fill in the blank 4 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | $219,000 | $306,600 | ||
| Credit card receivables-beginning | 40,352 | 63,501 | ||
| Credit card receivables-ending | 33,688 | 48,891 |
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 | fill in the blank 1 | fill in the blank 2 | ||
| 2. Number of days' sales in receivables | fill in the blank 3 | days | fill in the blank 4 | 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.
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