Use the below data to analyze the accounts receivable turnover ratios of Ralph Lauren Corporation and L Brands, Inc.

Ralph Lauren Corporation

Ralph Lauren Corporation (RL) designs, markets, and distributes a variety of apparel, home dcor, accessory, and fragrance products. The companys products include such brands as Ralph Lauren, Polo by Ralph Lauren, and Chaps. For two recent years, the company reported the following (in millions):

Line Item Description	Year 2	Year 1
Sales	$6,313.0	$6,182.3
Accounts receivable (end of year)	398.1	421.4

The accounts receivable at the beginning of Year 1 was $450.2 million.

L Brands, Inc.

L Brands, Inc. (LB) sells womens clothing and personal health care products through specialty retail stores including Victorias Secret and Bath & Body Works stores. L Brands reported the following (in millions) for two recent years:

Line Item Description	Year 2	Year 1
Sales	$13,237	$12,632
Accounts receivable:
Beginning of year	310	294
End of year	367	310

a. Compute the accounts receivable turnover ratios for Ralph Lauren and L Brands. Average the accounts receivable turnover ratio for the two years. For interim computations, carry amounts out to one decimal place. Round your final answers to one decimal place.

Line Item Description	Accounts Receivable Turnover Ratios
Ralph Lauren:	fill in the blank 1
L Brands:	fill in the blank 2

b. Does L Brands or Ralph Lauren have the higher average accounts receivable turnover ratio?

Ralph LaurenL Brands

c. Based on the calculations and facts, which of the following statements is correct? 1. Ralph Lauren's business customers to take a longer period to pay their receivables. 2. L Brand's business customers to take a longer period to pay their receivables. 3. Customers of both the companies take the same time to pay their receivables. 4. Customers of both the companies do not pay their receivables.