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Mikey Inc. designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. Armer Inc. develops, markets, and distributes branded performance apparel, footwear, and accessories for men, women, and youth. The following financial information is reported by both companies. Accounts Accounts Accounts Receivable Receivable Receivable Sales $ millions Year 3 Year 2 Year 2 Year 3 Year 2 Mikey Inc. $3,889.2 $3,358.0 $4,167.9 $45,326.4 $33,661.1 Armer Inc. 477.0 332.3 298.0 5,152.3 3,392.8 Sales Required a. Compute the accounts receivable turnover ratio and the average days to collect receivables for year three and for year two for both Mikey Inc. and Armer Inc. Note: Round your answers to two decimal places. Accounts receivable turnover Year 3 Year 2 Mikey Inc. 0 0 Armer Inc. 0 0 Average days to collect receivables Year 3 Year 2 Mikey Inc. 0 Armer Inc. 0 0 0 b. Analyze the year-to-year results for both companies. Trends in Year 3 as compared to Year 2 for the Mikey Inc.indicate a Lower liquidity Indicated by the accounts receivable turnover ratio Higher liquidity Indicated by the average days to collect receivables These results indicate the following when comparing financial conditions of Year 2 to Year 3: Weakened Trends in Year 3 as compared to Year 2 for Armer Inc. indicate a Higher liquidity Indicated by the accounts receivable turnover ratio Lower liquidity Indicated by the average days to collect receivables These results indicate the following when comparing financial conditions of Year 2 to Year 3: Improved

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