Question

Accounts Receivable Analysis Bassett Stores Company and Fox Stores Inc. are large retail department stores. Both...

Accounts Receivable Analysis

Bassett Stores Company and Fox 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):

Bassett Fox
Merchandise sales $255,500 $357,700
Credit card receivables—beginning 47,459 81,837
Credit card receivables—ending 39,621 63,007

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

Bassett Stores
Fox Stores

      (2) Determine the days' sales in receivables for both companies. Assume there are 365 days in the year. Round intermediate calculations to the nearest whole dollar and final answers to one decimal place.

Bassett Stores days
Fox Stores days

b. What conclusion can be drawn regarding the two companies and their credit card policies?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Accounts Receivable Analysis Xavier Stores Company and Lestrade Stores Inc. are large retail department stores. Both...
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 $240,900 $335,800 Credit card receivables-beginning 41,653 66,638 Credit card receivables-ending 34,775 51,306 a. Determine the (1) accounts receivable turnover and (2) the number of days' sales in receivables for both companies. Round...
Accounts Receivable Analysis Xavier Stores Company and Lestrade Stores Inc. are large retail department stores. Both...
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 a. Determine the (1) accounts receivable turnover and (2) the number of days' sales in receivables for both companies. Round...
Accounts Receivable Analysis Xavier Stores Company and Lestrade Stores Inc. are large retail department stores. Both...
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 a. Determine the (1) accounts receivable turnover and (2) the number of days' sales in receivables for both companies. Round...
Xavier Stores Company and Lestrade Stores Inc. are large retail department stores. Both companies offer credit...
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 $211,700 $295,650 Credit card receivables-beginning 37,489 68,098 Credit card receivables-ending 31,299 52,430 a. Determine the (1) accounts receivable turnover and (2) the number of days' sales in receivables for both companies. Round answers to one...
Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms...
Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y3 20Y2 20Y1 Accounts receivable, end of year $135,400 $142,000 $150,000 Sales on account 901,550 861,400 a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year. 20Y3 20Y2 1. Accounts receivable turnover 2. Number of days' sales in...
Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms...
Accounts Receivable Analysis The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y3 20Y2 20Y1 Accounts receivable, end of year $725,000 $650,000 $600,000 Sales on account 5,637,500 4,687,500 a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. 20Y3 20Y2 1. Accounts...
Accounts Receivable Turnover and Days' Sales in Receivables Quasar, Inc. sells clothing, accessories, and personal care...
Accounts Receivable Turnover and Days' Sales in Receivables Quasar, Inc. sells clothing, accessories, and personal care products for men and women through its retail stores. Quasar reported the following data for two recent years: Year 2 Year 1 Sales $3,831,040 $3,798,190 Accounts receivable 306,600 292,000 Assume that accounts receivable were $335,800 at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round to one decimal place. Year 2: Year 1: b. Compute...
Accounts Receivable Analysis The following data are taken from the financial statements of Outdoor Patio Inc....
Accounts Receivable Analysis The following data are taken from the financial statements of Outdoor Patio Inc. Terms of all sales are 2/10, n/60. Year 3 Year 2 Year 1 Accounts receivable, end of year $190,200 $204,000 $219,400 Sales 1,123,470 1,100,840 a. For Years 2 and 3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Assume there are 365 days in the year. Round intermediate calculations to the nearest whole dollar and final answers...
Accounts receivable analysis The following data are taken from the financial statements of Sigmon Inc. Terms...
Accounts receivable analysis The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.    20Y3 20Y2    20Y1 Accounts receivable, end of year $725,000 $660,000 $600,000 Sales on account 5,638,000 4,528,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet a.) For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and...
Inventory Turnover and days’ sales in inventory Kracker Corp., Foodstuff, Inc., and Winston Stores, Inc. are...
Inventory Turnover and days’ sales in inventory Kracker Corp., Foodstuff, Inc., and Winston Stores, Inc. are three grocery chains in the United States. Inventory management is an important aspect of the grocery retail business. Recent balance sheets for these three companies indicated the following merchandise inventory (in millions) information: Kracker Corp. Foodstuff Inc. Winston Stores Cost of merchandise sold $32,850.0 $34,675.0 $35,040.0 Inventory, beginning of year 1,908.9 2,131.8 1,582.1 Inventory, end of year 1,871.1 2,048.2 1,489.9 a. & b. Determine...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT