Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Analyze and compare Amazon.com to Best Buy Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Best Buy, Co. Inc.
Analyze and compare Amazon.com to Best Buy Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Best Buy, Co. 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 sells only through the Internet. Current asset and current liability information from recent financial statements are as follows (in millions): Amazon Best Buy Current assets: Cash $31,750 $1,980 Short-term investments 9,500 Accounts receivable 16,677 1,015 Inventories 17,174 5,409 Other current assets 466 Total current assets $75,101 $8,870 Current liabilities: Accounts payable Other current liabilities Total current liabilities $38,192 $5,257 30,199 2,256 $68,391 $7,513 Required: a. Compute working capital for each company. Amazon: $ million Best Buy: $ million b. Compute the current ratio for each company. Round your answers to one decimal place. Amazon: Best Buy: c. Compute the quick ratio for each company. Round your answers to one decimal place. Amazon: Best Buy: d. Can the working capital be usefully compared between the two companies? Which of the following statements is correct.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started