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):

Line Item Description	Xavier	Lestrade
Sales	$8,500,000	$4,585,000
Credit card receivablesbeginning	820,000	600,000
Credit card receviablesending	880,000	710,000

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.

Line Item Description	Xavier	Lestrade
1. Accounts receivable turnover	fill in the blank 1	fill in the blank 2
2. Days Sales in Receivables	fill in the blank 3 days	fill in the blank 4 days

b. Xavier's accounts receivable turnover is much fill in the blank 1 of 4

higherlower

than Lestrade's. The days sales in receivables is fill in the blank 2 of 4

higherlower

for Xavier than for Lestrade. These differences indicate that Xavier is able to turn over its receivables fill in the blank 3 of 4

lessmore

quickly than Lestrade. As a result, it takes Xavier fill in the blank 4 of 4

lessmore

time to collect its receivables.