Accounts Receivable Analysis

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	$255,500		$357,700
Credit card receivablesbeginning	47,459		81,837
Credit card receivablesending	39,621		63,007

a. (1) Determine the accounts receivable turnover for both companies. Round to one decimal place.

Bassett Stores
Fox Stores

(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	days
Fox Stores	days

b. What conclusion can be drawn regarding the two companies and their credit card policies?