In its recent annual report, May Department Stores disclosed the following: “During www.maycompany.com 1997, credit sales under department store credit programs were $5.8 billion, or 45.6% of 1997 revenues; this compares with 50% in 1996 and 54.5% in 1995. Sales made through third-party credit cards totaled $3.6 billion in 1997, compared with $3.0 billion in 1996 and $2.4 billion in 1995.”

Net accounts receivable consisted of (in millions):

Jan. 31, 1998 Feb. |, 1997 Customer accounts receivable $2,167 $2,410 Other accounts receivable 93 119 Total accounts receivable $2,260 $2,529 Allowance for uncollectible accounts (96) (104)
Accounts receivable, net $2,164 $2,425 May’s net retail sales in 1997, 1996, and 1995 were $12,352 million, $11,546 million, and $10,402 million, respectively.
Required: Evaluate (1) May Department Stores’ sales performance and (2) its creditgranting performance. TYK-1