Question
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.
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):
XavierLestradeSales$262,800$368,650Credit card receivables-beginning35,23858,663Credit card receivables-ending29,41845,165
a.Determine the (1)accounts receivable turnoverand (2) thenumber of days' sales in receivablesfor both companies. Round answers to one decimal place. Assume 365 days a year.
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