Best Buy is a specialty retailer of consumer electronics, including personal computers, entertainment software, and appliances. Best Buy operates retail stores in addition to the Best Buy, Media Play, On Cue, and Magnolia Hi-Fi Web sites. For two recent years, Best Buy reported the following (in millions):

Assume that the accounts receivable (in millions) were $375 at the beginning of the year ending February 25, 2006.
1. Compute the accounts receivable turnover for 2007 and 2006. Round to one decimal place.
2. Compute the days' sales in receivables at the end of 2007 and 2006.
3. What conclusions can be drawn from (1) and (2) regarding Best Buy's efficiency in collecting receivables?
4. For its years ending in 2007 and 2006, Circuit City Stores, Inc., has an accounts receivable turnover of 30.7 and 50.6, respectively. Compare Best Buy's efficiency in collecting receivables with that of Circuit City.
5. What assumption did we make about sales for the Circuit City and Best Buy ratio computations that might distort the two company ratios and therefore cause the ratios not to becomparable?

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Year Ending Feb. 25, 2006 Mar. 3, 2007 Net sales Accounts receivable at end of year $35,934 $30,848 548 506