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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 10E: Accounts receivable analysis Xavier Stores Company and Lestrade Stores Inc. are large retail...

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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 LestradeSales $8,500,000 $4,585,000Credit card receivables—beginning 820,000 600,000Credit card receviables—ending 880,000 710,000a. Determine the (1) accounts receivable turnover and (2) the number of days’ sales in receivables for both companies. Round to one decimal place.b. Compare the two companies with regard to their credit card policies.
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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 Fox Merchandise sales $229,950 $321,200 Credit card receivables—beginning 37,356 66,625 Credit card receivables—ending 31,188 51,295 a. (1) Determine the accounts receivable turnover for both companies. Round to one decimal place. Bassett Stores fill in the blank 1 Fox Stores fill in the blank 2 (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. Bassett Stores fill in the blank 3 days Fox Stores fill in the blank 4 days b. What conclusion can be drawn regarding the two companies and…
Question Content Area 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 your calculations and 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. Fill in the blank: Xavier's accounts receivable turnover is much 1)_____ than Lestrade's. The…
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