Comparative figures for Best Buy and RadioShack follow.

Required

1. Compute the accounts receivable turnover for Best Buy and RadioShack for each of the two most recent years using the data shown.

2. Using results from part 1, compute how many days it takes each company, on average, to collect receivables. Why are these periods so short? Do you believe that receivables are actually collected this quickly? Explain.

3. Which company is more efficient in collecting its accounts receivable? Explain.

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Best Buy RadioShack One Two Current Year Years Current YearYears Year Prior Prior YearPrior Prior One Two ($ millions) Accounts Net sales . .. 45,015 40,023 35,9344,224.5 4,257 4,777.5