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Amazon.com, Inc. (AMzN) is one of the largest Internet retailers in the world. Best Buy, Inc. (BBY) is a leading retailer of consumer electronics and
Amazon.com, Inc. (AMzN) is one of the largest Internet retailers in the world. Best Buy, Inc. (BBY) is a leading retailer of consumer electronics and media products in the United States. Amazon and Best Buy compete in similar markets; however, Best Buy sells through both traditional retail stores and the Internet, while Amazon selis only through the Internet. Sales and accounts recelvable information for both companies for a recent period follows (In millions): a. Determine the accounts receivable tumover for each company. Round all calculations to one decimal place. b. Determine the number of days' sales in receivables for each company. Use 365 days and round all calculations to one decimal place. c. With regard to efficiency in collecting accounts receivable between the two companies which of the following statements is correct? 1. Best Buy is more efficient than Amazon in turning accounts receivable into cash. 2. Amazon is more efficient than Best buy in tuming accounts receivable into cash. 3. Both Amazon and Best Buy are equally efficient in turning accounts receivable into cash. 4. Both Amazon and Best Buy are equally inefficient in tuming accounts recelvable into cash
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