The Limited, Inc., sells womens and mens clothing through specialty retail stores. The Limited sells womens intimate

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The Limited, Inc., sells women’s and men’s clothing through specialty retail stores. The Limited sells women’s intimate apparel and personal care products through Victoria’s Secret and Bath & Body Works stores. The Limited reported the following (in millions):

For the Period Ending Feb. 3, 2007 $10,671 Jan. 28, 2006 Net sales Accounts receivable $9,699 182 176

a. Compute the accounts receivable turnover for 2007 and 2006. Round to one decimal place.

b. Compute the day’s sales in receivables for 2007 and 2006. Round to one decimal place.

c. What conclusions can be drawn from these analyses regarding The Limited’s efficiency in collecting receivables?

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Accounting

ISBN: 978-0324662962

23rd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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Question Posted: Dec 10, 2011 09:53 AM

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The Limited, Inc., sells womens and mens clothing through specialty retail stores. The Limited sells womens intimate

Question:

For the Period Ending Feb. 3, 2007 $10,671 Jan. 28, 2006 Net sales Accounts receivable $9,699 182 176

Step by Step Answer:

a and b For the Period Ending Feb 3 Jan 28 2007 2006 Net sales 10671 9699 Accounts receivable 176 18...View the full answer

Accounting

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