Accounts receivable analysis Obj. 3 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 to one decimal place.

b. Compare the two companies with regard to their credit card policies.AppendixLO1