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): a. Determine the (1) accounts receivable turnover and (2) the days' sales in receivables for both companies. Round your calculations and answers to one decimal place. Assume 365 days a year. b. Xavier's accounts receivable turnover is much than Lestrade's. The days' sales in receivables is for Xavier than for Lestrade. These differences indicate that Xavier is able to turn over its receivables quickly than Lestrade. As a result, it takes Xavier time to collect its receivables. Fegdback Check My Work a.1. Divide merchandise sales by average credit card receivables. Average credit card receivables =( Beginning Receivables + Ending Receivables )2. a.2. Divide average credit card receivables by average daily merchandise sales. Average credit card receivables = (Beginning Receivables + Ending Receivables) 2. Average daily merchandise sales = Merchandise Sales 365 days b. Consider the relationship of the accounts involved