ASSET EFFICIENCY RATIOS Use Apparel’s financial statements in Exercise 12-65 and the information below to respond to the following requirements.

Statement Item January 1, 2008

(In Thousands)

Accounts receivable $ 752,945 Inventories 698,604 Total assets 3,485,233 Required:

. Compute the three asset efficiency ratios for 2008 and 2009.

. Indicate Apparel’s operating cycle for the years ended December 31, 2009, and December 31, 2008.

Exercise