Question

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	12.27		12.67
American Eagle Outfitters	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:
American Eagle Outfitters:

Answer 1