Use the data in Exercises 9-27 and 9-28 to analyze the accounts receivable turnover ratios of H.J. Heinz Company and The Limited, Inc.
a. Compute the average accounts receivable turnover ratio for The Limited, Inc., and H.J.Heinz Company for the years shown in Exercises 9-27 and 9-28.
b. Does The Limited or H.J. Heinz Company have the higher average accounts receivable turnover ratio?
c. Explain the logic underlying your answer in (b).

Data From Exercise 9-27:

H.J. Heinz Company was founded in 1869 at Sharpsburg, Pennsylvania, by Henry J. Heinz. The company manufactures and markets food products throughout the world, including ketchup, condiments and sauces, frozen food, pet food, soups, and tuna. For the fiscal years 2005 and 2004, H.J. Heinz reported the following (in thousands):

Data From Exercise 9-28:

The Limited, Inc., sells women’s and men’s clothing through specialty retail stores, including The Limited, Express, and Lane Bryant. 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):