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Ralph Lauren Corporation (RL) designs, markets, and distributes a variety of apparel, home décor, accessory, and fragrance products. The company's products inc such brands as Ralph Lauren, Polo by Ralph Lauren, and Chaps. For two recent years, the company reported the following (in millions): Year 2 Year 1 Sales $6,313.0 $6,182.3 Accounts receivable (end of year) 398.1 421.4 The accounts receivable at the beginning of Year 1 was $450.2 million. a. Compute the accounts receivable turnover for Year 1 and Year 2. For interim computations, carry amounts out to one decimal place. Round your final answers to one decimal place. Year 2 15.4 Year 1 14.2 Accounts Receivable Turnover b. Compute the days' sales in receivables for Year 1 and Year 2. Assume 365 days in a year. For interim computations, carry amounts out to one decimal place Round your final answers to one decimal place. Year 2 Days' Sales in Receivables c. The accounts receivable turnover has increased increase 25 days between the two years. In addition, the days' sales in receivables decreased in the efficiency in collecting accounts receivable between the two years. Year 1 days There appears to be an

Ralph Lauren Corporation (RL) designs, markets, and distributes a variety of apparel, home décor, accessory, and fragrance products. The company's products inc such brands as Ralph Lauren, Polo by Ralph Lauren, and Chaps. For two recent years, the company reported the following (in millions): Year 2 Year 1 Sales $6,313.0 $6,182.3 Accounts receivable (end of year) 398.1 421.4 The accounts receivable at the beginning of Year 1 was $450.2 million. a. Compute the accounts receivable turnover for Year 1 and Year 2. For interim computations, carry amounts out to one decimal place. Round your final answers to one decimal place. Year 2 15.4 Year 1 14.2 Accounts Receivable Turnover b. Compute the days' sales in receivables for Year 1 and Year 2. Assume 365 days in a year. For interim computations, carry amounts out to one decimal place Round your final answers to one decimal place. Year 2 Days' Sales in Receivables c. The accounts receivable turnover has increased increase 25 days between the two years. In addition, the days' sales in receivables decreased in the efficiency in collecting accounts receivable between the two years. Year 1 days There appears to be an

FINANCIAL ACCOUNTING
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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Ralph Lauren Corporation (RL) designs, markets, and distributes a variety of apparel, home décor, accessory, and fragrance products. The company's products include such brands as Ralph Lauren, Polo by Ralph Lauren, and Chaps. For two recent years, the company reported the following (in millions): Year 2 Year 1 Sales $6,313.0 $6,182.3 Accounts receivable (end of year) 398.1 421.4 The accounts receivable at the beginning of Year 1 was $450.2 million. a. Compute the accounts receivable turnover for Year 1 and Year 2. For interim computations, carry amounts out to one decimal place. Round your final answers to one decimal place. Year 1 14.2 Accounts Receivable Turnover 15.4 b. Compute the days' sales in receivables for Year 1 and Year 2. Assume 365 days in a year. For interim computations, carry amounts out to one decimal place. Round your final answers to one decimal place. Year 2 Year 2 Year 1 days Days' Sales in Receivables 25 days c. The accounts receivable turnover has increased between the two years. In addition, the days' sales in receivables decreased increase in the efficiency in collecting accounts receivable between the two years. There appears to be an
Transcribed Image Text:Ralph Lauren Corporation (RL) designs, markets, and distributes a variety of apparel, home décor, accessory, and fragrance products. The company's products include such brands as Ralph Lauren, Polo by Ralph Lauren, and Chaps. For two recent years, the company reported the following (in millions): Year 2 Year 1 Sales $6,313.0 $6,182.3 Accounts receivable (end of year) 398.1 421.4 The accounts receivable at the beginning of Year 1 was $450.2 million. a. Compute the accounts receivable turnover for Year 1 and Year 2. For interim computations, carry amounts out to one decimal place. Round your final answers to one decimal place. Year 1 14.2 Accounts Receivable Turnover 15.4 b. Compute the days' sales in receivables for Year 1 and Year 2. Assume 365 days in a year. For interim computations, carry amounts out to one decimal place. Round your final answers to one decimal place. Year 2 Year 2 Year 1 days Days' Sales in Receivables 25 days c. The accounts receivable turnover has increased between the two years. In addition, the days' sales in receivables decreased increase in the efficiency in collecting accounts receivable between the two years. There appears to be an
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