chapter 17 question 5

Shelby Stores Company and Landon 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): a. Determine the (1) accounts receivable turnover and (2) the number of days' sales in receivables for both companies. Round answers to one decimal place. Assume 365 days a year. 1. Accounts receivable turnover 2. Number of days' sales in receivables b. Shelby's accounts receivable turnover is than Landon's. The number of days' sales in receivables is for Shelby than for Landon. These differences indicate that Shelby is able to turn over its receivables quickly than Landon As a result, it takes Shelby time to collect its receivables