Barker Sales has a days' sales in receivables figure of 40 and Xanadu Company has a days' sales in receivables of 32.This would suggest that Xanadu is having greater difficulty collecting their accounts receivable than Barker.

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The opposite is true. A higher days' sales in receivables figure suggests that a company is taking longer to collect their accounts receivable, which means they are having greater difficulty. Therefore, Barker Sales is having greater difficulty collecting their accounts receivable than Xanadu Company because their days' sales in receivables figure (40) is higher than Xanadu's (32).

Barker Sales Has a Days' Sales in Receivables Figure of 40