Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Transcribed Image Text: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):
Sales
Credit card receivables-beginning
Credit card receivables-ending
Xavier
Lestrade
$277,400
$386,900
50,284
41,980
43,001
33,107
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
Xavier
days
Lestrade
days
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