CP6-3 Comparing Companies within an Industry CL06-2, 6-4 1 Refer to the financial statements of American Eagle Outfitters (Appendix B) and Express, Inc. (Appendix C) and the Industry Ratio Report (Appendix D) at the end of this book. Required: 1. Compute the receivables turnover ratio for both companies for the most recent year. 2. What do you think explains the difference in the ratios? Consider the makeup of each company's receivables. 3. Compare the receivables turnover ratio for each company for the most recent reporting year to the industry average. Are these two companies doing better or worse than the industry average? Page 338 Note for 3 - industry average would be the average between the 2 numbers you calculated in req 1. American Eagle Outfitters - https://www.sec.gov/Archives/edgar/data/919012/000156459018006045/ae 0-10k_20180203.htm Express, Inc: https://s22.94cdn.com/300448702/files/doc financials/annual/2017/2017-A nnual-Report.pdf CP6-3 Comparing Companies within an Industry CL06-2, 6-4 1 Refer to the financial statements of American Eagle Outfitters (Appendix B) and Express, Inc. (Appendix C) and the Industry Ratio Report (Appendix D) at the end of this book. Required: 1. Compute the receivables turnover ratio for both companies for the most recent year. 2. What do you think explains the difference in the ratios? Consider the makeup of each company's receivables. 3. Compare the receivables turnover ratio for each company for the most recent reporting year to the industry average. Are these two companies doing better or worse than the industry average? Page 338 Note for 3 - industry average would be the average between the 2 numbers you calculated in req 1. American Eagle Outfitters - https://www.sec.gov/Archives/edgar/data/919012/000156459018006045/ae 0-10k_20180203.htm Express, Inc: https://s22.94cdn.com/300448702/files/doc financials/annual/2017/2017-A nnual-Report.pdf