Use Apparel’s financial statements in Exercise 12-65 and the information below to respond to the following requirements.

January 1, 2008

Statement Item (In Thousands)

Accounts receivable ..........$ 752,945

Inventories ............. 698,604

Total assets .............3,485,233

Required:

1. Compute the three asset efficiency ratios for 2008 and 2009.

2. Indicate Apparel’s operating cycle for the years ended December 31, 2009, and December 31, 2008.