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Xavier Stores Company and Lestrade Stores Inc. are large retail department stores. Both companies offer credt to ther customers through ther 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 beginnng 820,000 600,000 Credit card receviatles ending n80,000 710,000 a. Determene the (1) ccounts ercevable turnover and (2) the number of days' sales in recervables for both companies. Round your caloulations aed answers to one dedmal place. Assume 365 days a year Xavier Lestrade 1. Accounts receivable turnover 10 2. Number of days' sales in receivables days days than Lestrade's. The number of days' sales in receivables is lower for Xavier than for Lestrade. These b. Xavier's accounts receivable turnover is much higher differences indicate that Xavier is able to turn over its receivables more quickly than Lestrade. As a result, it takes Xavier less time to collect its receivables

Xavier Stores Company and Lestrade Stores Inc. are large retail department stores. Both companies offer credt to ther customers through ther 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 beginnng 820,000 600,000 Credit card receviatles ending n80,000 710,000 a. Determene the (1) ccounts ercevable turnover and (2) the number of days' sales in recervables for both companies. Round your caloulations aed answers to one dedmal place. Assume 365 days a year Xavier Lestrade 1. Accounts receivable turnover 10 2. Number of days' sales in receivables days days than Lestrade's. The number of days' sales in receivables is lower for Xavier than for Lestrade. These b. Xavier's accounts receivable turnover is much higher differences indicate that Xavier is able to turn over its receivables more quickly than Lestrade. As a result, it takes Xavier less time to collect its receivables

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 Annlysis 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 n80,000 710,000 a. Determaie the (1) accounts erceivable turnover and (2) the number of days sales in recervables for both companies. Round your calculations and answers to one decimal place. Assume 365 days a yeat Xavier Lestrade 1. Accounts receivable turnover 10 2. Number of days' sales in receivables days days - than Lestrade's. The number of days' sales in receivables is lower for Xavier than for Lestrade. These b. Xavier's accounts receivable turnover is much higher quickly than Lestrade. As a result, it takes Xavier less time to collect its receivables differences indicate that Xavier is able to turn over its receivables more
Transcribed Image Text:Accounts Receivable Annlysis 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 n80,000 710,000 a. Determaie the (1) accounts erceivable turnover and (2) the number of days sales in recervables for both companies. Round your calculations and answers to one decimal place. Assume 365 days a yeat Xavier Lestrade 1. Accounts receivable turnover 10 2. Number of days' sales in receivables days days - than Lestrade's. The number of days' sales in receivables is lower for Xavier than for Lestrade. These b. Xavier's accounts receivable turnover is much higher quickly than Lestrade. As a result, it takes Xavier less time to collect its receivables differences indicate that Xavier is able to turn over its receivables more
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