Continuing Company Analysis-Amazon: Accounts receivable turnover and number of days' sales in recelvables Amazon.com, Inc. is one of the largest Internet retailers in the world. Best Buy, Inc. 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 recelvable information for both companies for a recent period follows (in millions): Amazon Best Buy Sales Accounts receivable: Beginning of year 4,767 1,308 $88,988 $40,339 End of year ,612 1,280 a. Determine the accounts receivable turnover for each company. Round all calculations to one decimal place Amazon Best Buy Accounts Receivable Turnover b. Determine the number of days' sales in receivables for each company, Use 365 days and round all calculations to one dedimal Amazon Best Buy Number of Days' Sales in Receivables receivable between the two companies which of the following statements is correct? 1. Best Buy is more efficient than Amazon in turning accounts recelivable into cash 2. Amazon is more efficient than Best buy in turning accounts receivable into 3. Both Amazon and Best Buy are equally efficient in turning accounts receivable into 4 Both Amazon and Best Buy are equally inefficient in turning accounts receivable into d. hat might explain the difference in the above ratios? 1. Diference in the type of customers served by the two companies Continuing Company Analysis-Amazon: Accounts receivable turnover and number of days' sales in recelvables Amazon.com, Inc. is one of the largest Internet retailers in the world. Best Buy, Inc. 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 recelvable information for both companies for a recent period follows (in millions): Amazon Best Buy Sales Accounts receivable: Beginning of year 4,767 1,308 $88,988 $40,339 End of year ,612 1,280 a. Determine the accounts receivable turnover for each company. Round all calculations to one decimal place Amazon Best Buy Accounts Receivable Turnover b. Determine the number of days' sales in receivables for each company, Use 365 days and round all calculations to one dedimal Amazon Best Buy Number of Days' Sales in Receivables receivable between the two companies which of the following statements is correct? 1. Best Buy is more efficient than Amazon in turning accounts recelivable into cash 2. Amazon is more efficient than Best buy in turning accounts receivable into 3. Both Amazon and Best Buy are equally efficient in turning accounts receivable into 4 Both Amazon and Best Buy are equally inefficient in turning accounts receivable into d. hat might explain the difference in the above ratios? 1. Diference in the type of customers served by the two companies
