1. The Campbell Soup Company manufactures and markets food products throughout the world. The following sales and receivable data (in millions) were reported by Campbell Soup for two recent years:

   	Year 2		Year 1
   Sales	$8,082		$8,268
   Accounts receivable	647		670

   Assume that the accounts receivable (in thousands) were $635 million at the beginning of Year 1.

   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 the accounts receivable (in millions) were $74 million at the beginning of Year 1.

   	Accounts receivable turnover ratios
   	Year 2		Year 1
   Campbell Soup Company	12.27		12.67
   American Eagle Outfitters, Inc.	47.28		46.24

   Use the above information to analyze the accounts receivable turnover ratios of American Eagle Outfitters and Campbell Soup.

   a. Compute the average accounts receivable turnover ratio for Campbell Soup and American Eagle Outfitters for Year 2 and Year 1. Round interim calculations and final answers to two decimal places.

   Campbell Soup:	fill in the blank 1
   American Eagle Outfitters:	fill in the blank 2

   b. Does Campbelll Soup or American Eagle have the higher average accounts receivable turnover ratio? _________has the higher average accounts receivable turnover ratio.

   c. Explain why the average turnover ratios are different in (b). American Eagle Outfitters operates a specialty retail chain of stores that sells directly to individual consumers. Many of these consumers (retail customers) pay using MasterCard or VISA, which is recorded as cash sales. In contrast, Campbell Soup manufactures foods that are sold to food wholesalers, grocery store chains, and other food distributors that eventually sell Campbells products to individual consumers. Accordingly, because of the extended distribution chain, we would expect Campbell Soup to have________ accounts receivable than American Eagle. In addition, we would expect Campbells business customers to take a_________ period to pay their receivables. Thus, we would expect Campbells average accounts receivable turnover ratio to be_________ than American Eagle