American Eagle Outfitters, Inc. sells clothing, accessories, and personal care products formen and women through its retail stores. American Eagle reported the following data(in millions) for two recent years:Year 2Year 1Sales$3,522$3,283Accounts receivable6881Assume that accounts receivable (in millions) were $74 million at the beginning of Year 1.a. Compute the accounts receivable turnover for Year 2 and Year 1. Round to two decimalplaces.b. Compute the day's sales in receivables for Year 2 and Year 1. Use 365 days and roundto one decimal place.c. What conclusions can be drawn from these analyses regarding American Eagle Outfitters'efficiency in collecting receivables?

Answered: American Eagle Outfitters, Inc. sells…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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