1. 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:

   	Year 2		Year 1
   Sales	$3,522		$3,283
   Accounts receivable	81		68

   Assume 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 decimal places.

   Year 2:
   Year 1:

   b. Compute the day's sales in 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.

   Year 2:
   Year 1:

   c. The change in accounts receivable turnover from year 1 to year 2 indicates a(n) in the efficiency of collecting accounts receivable and is a(n) change. The change in the days' sales in receivables indicates a(n) change.