09.11 ALGO 09.12 ALGO 09.18 ALGO 09.17 ALGO 09.20 ALGO 09.22 ALGO 09.20 09.01 ALGO Accounts Receivable Turnover and Days' Sales in Receivables 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: Sales Accounts receivable Year 2 Year 1 $4,036 $3,796 93 78 Assume that accounts receivable were $87 million at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round final answers to two decimal places. Year 2 Year 11 b. Compute the day's sales receivables for Year 2 and Year 1. Round interim calculations and final answers to one decimal place. Use 365 days per year in your calculations. 0902 ALGO Year 2 PR.09.03 ALGO Year 1 days days The change in accounts receivable turnover from year 1 to year 2 indicates a(n) increase change. The change in the days' sales in receivables indicates a(n) favorable favorable in the efficiency of collecting accounts receivable and is a(n) change Oh My The Accounts recevable over is a ratio of Sales to Average accounts receivable. The number of Days Sales in Receivables is a ratio of Average accounts receivable to Average daly Consider the components of the ratios Consider whether changes need efficiency Adecreasing accounts receivable tumver indicates an unfavorable trend, while an increasing day sa invaties indicates an unfavorable brand Progress 7/10 m Check My Work