American Eagle Outfitters, Inc. sells clothing, accessories, and personal care products for men and women through its

Question:

American Eagle Outfitters, Inc. sells clothing, accessories, and personal care products for men and women through its retail stores. American Eagle reported the following data (in millions) for two recent years:
____________________ Year 2 ________ Year 1
Sales ..................... $3,522 ............... $3,283
Accounts receivable ....... 81 ..................... 68
Assume that (in millions) were $74 million at the beginning of Year 1.
a. Compute the turnover for Year 2 and Year 1. Round to two decimal places.
b. Compute the day's sales in receivables for Year 2 and Year 1. Use 365 days and round to one decimal place.
c. What conclusions can be drawn from these analyses regarding American Eagle Outfitters' efficiency in collecting receivables?
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...