Source: Computed from amounts in the Form 10-Ks of American Eagle Outfitters, GAP, and Ross Stores for the fiscal year ended February 3, 2018.

All three companies follow the industry practice of including occupancy costs in cost of goods sold.

Required:

Do any of these companies appear to have a short-term liquidity problem?

How does the industry practice of including occupancy costs in cost of goods sold affect the statistics presented in the above table?

What is the most likely explanation for Ross Storess 2.1 days accounts receivable outstanding?

What is the most likely explanation for 0.0 days accounts receivable outstanding at The GAP?