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Calculator Print I am Accounts Receivable Analysis Xavier Stores Company and Lestrade Stores Inc. are large retail department stores. Both companies offer credit to their
Calculator Print I am 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): Xavier Lestrade $211,70 $295,650 53,179 0,943 Sales 37,995 31,721 Credit card receivables-beginning Credit card receivables ending a. Determine the (1) accounts recelvable turnover and (2) the number of days' sales in receivables for both companies. Round answers to one decimal place. Assume 365 days a year Xavier Lestrade 6.3 58 X days 1. Accounts receivable turnover 2. Number of days' sales in receivables b, Xavier's accounts receivable turnover is higher X . than Lestrade's. The number of days' sales in receivables is lower X for Xavier than for Lestrade. These differences indicate that Xavier is able to turn over its receivables more x quickly than Lestrade. As a result, it takes Xavier less X time to collect its receivables 7.1X 51 X days
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