what conclusions can be drawn from these analyses regarding the limited s efficiency 642740
The Limited, Inc., sells women’s and men’s clothing through specialty retail stores, including The Limited, Express, and Lane Bryant. The Limited sells women’s intimate apparel and personal care products through Victoria’s Secret and Bath & Body Works stores. The Limited reported the following (in millions):
|
|
For the Period Ending |
|
|
|
Jan. 31, 2006 |
Jan. 29, 2005 |
|
Net sales |
$9,699 |
$9,408 |
|
Account receivable |
182 |
128 |
Assume that accounts receivable (in millions) were $110 on February 1, 2004.
a. Compute the accounts receivable turnover for 2006 and 2005. Round to one decimal place.
b. Compute the day’s sales in receivables for 2006 and 2005. Round to one decimal place.
c. What conclusions can be drawn from these analyses regarding The Limited’s efficiency in collecting receivables?