(Increased, decreased, strong,weak, ample, insufficient, improved, deteriorated)

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 mllions): Xavier Lestrade Sales Credit card receivables-beginning Credit card receivables-ending a. Determine the 1) accounts receivable tumover and (2) the number of days' sales in receivables for both companies. Round answers to one decimal place. Assume 365 days a year $240,900 26,618 22,222 $335,800 35,762 27,534 Xavier Lestrade 1. Accounts receivable turnover 2. Number of days' sales in receivables b. Xavier's accounts receivable turnover is to turn over its receivables days days than Lestrade's. The number of days' sales in receivables is for Xavier than for Lestrade. These differences indicate that Xavier is able quickly than Lestrade. As a result, it takes Xavier time to collect its receivables. Current Position Analysis PepsiCo, Inc., the parent company of Frito-Lay snack foods and Pepsi beverages, had the following current assets and current liabilities at the end of two recent years Current Year Previous Year (in millions) (in millions) $2,385 4,430 4,543 3,685 1,363 3,912 Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net $2,553 1,813 S,765 2,763 921 368 Prepaid expenses and other current assets Short-term obligations Accounts payable a. Determine the (1) current ratio and (2) quick ratio for both years. Round answers to one decimal place A financial ratio that is computed by dividing current assets by cent liabilities Current Year Previous Year 1. Current ratio 2. Quick ratio b. The liquidity of PepsiCo has for meeting short-term obligatlons. Its liquidity as measured by the current and quick ratlos has some over this time period. Both the current and quick ratios have PepsiCo is a company with resources during this period