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 $244,550 $343,100 Credit card receivablesbeginning 54,261 45,037 Credit card receivablesending 45,301 34,675 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 their credit card policies Fox Stores is able to collect its credit card receivables more quickly than Bassett Stores Bassett Stores is able to collect its credit card receivables more quickly than Fox Stores No conclusion about the collection of the credit card receivables can be drawn from these data

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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

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	$244,550	$343,100
Credit card receivablesbeginning	54,261	45,037
Credit card receivablesending	45,301	34,675

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 their credit card policies?

Fox Stores is able to collect its credit card receivables more quickly than Bassett Stores.Bassett Stores is able to collect its credit card receivables more quickly than Fox Stores.No conclusion about the collection of the credit card receivables can be drawn from these data.