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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, Co. Inc. (BBY)

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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, 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 $38,192 $5,257 Other current abilities 30,199 2,256 Total current liabilities $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. Which company has the greater debt-paying ability according to the current ratio? f. Which company has the greater short-term debt-paying ability according to the quick ratio? % ye 9. Why are the resulta different between (C) and (0)? (Hint: Perform a vertical analysis of the current assets.) Round your answers to one decimal place. It an amount is zero, entero Amazon Best Buy Current assets: Cash % Short-term investments % Accounts receivable Inventories Other current assets % Total current assets % Amazon has % of its current assets consisting of cash and short-term investments, compared to % for Best Buy This difference will Amazon's quick ratio relative to Best Buy's. Best Buy has 61.0% of its current assets in inventory, while Amazon only has 22.9% of current assets In Inventory. This difference reflects Amazon's pure Internet strategy, which causes the current ratio to be than Best Buy's. It also causes the relationship between the current and quick ratios to diverge between the two companies %

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