Solution-Compare two companies with regard their credit

Compare two companies with regard their credit card policies

Reference no: EM132691668

Problem - 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
Sales	$8,500,000	$4,585,000
Credit card receivables-beginning	820,000	600,000
Credit card receviables-ending	880,000	710,000

Required -

a. Determine the (1) accounts receivable turnover. Round to one decimal place.

a. Determine (2) the number of days' sales in receivables for both companies. Round to one decimal place.

b. Compare the two companies with regard to their credit card policies.

Reference no: EM132691668

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Compare two companies with regard their credit card policies

Reference no: EM132691668

Reference no: EM132691668

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