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Analyze and compare Amazon.com to Best Buy Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Best Buy, Inc. (BBY)
Analyze and compare Amazon.com to Best Buy 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 sells only through the Internet. Sales and accounts receivable information for both companies for a recent period follows (in millions): Sales Accounts receivable: Amazon Best Buy $177,866 $42,879 Beginning of year 20,816 End of year 1,049 16,677 1,015 a. Determine the accounts receivable turnover for each company. For interim computations, carry amounts out to one decimal place. Round your final answers to one decimal place. Amazon Best Buy Accounts Receivable Turnover 9.5 41.5 b. Determine the days' sales in receivables for each company. Assume 365 days in a year. For interim computations, carry amounts out to one decimal place. Round your final answers to one decimal place. Amazon Best Buy Days' Sales in Receivables 38 X days days c. With regard to efficiency in collecting accounts receivable between the two companies which of the following statements is correct?
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