Polo Ralph Lauren Corporation designs, markets, and distributes a variety of apparel, home decor, accessory, and fragrance products. The company's products include such brands as Polo by Ralph Lauren, Ralph Lauren Purple Label, Ralph Lauren, Polo Jeans Co., and Chaps. Polo Ralph Lauren reported the following (in thousands):
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Assume that accounts receivable (in millions) were $530,503 at the beginning of the 2006 fiscal year.
a. Compute the days' sales in receivables for 2007 and 2006. Round to one decimal place.
b. What conclusions can be drawn from these analyses regarding Ralph Lauren's efficiency in collectingreceivables?