Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Best Buy, Inc....

 

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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): Amazon Best Buy Sales $177,866 $42,879 Accounts receivable: Beginning of year End of year 20,816 16,677 1,049 1,015 C. d. a. Determine the accounts receivable turnover for each company. Round all computations to one decimal place. b. Determine the days' sales in receivables for each company. Round all computations to one decimal place. Evaluate the relative efficiency in collecting accounts receivables between the two companies. What might explain this difference? 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): Amazon Best Buy Sales $177,866 $42,879 Accounts receivable: Beginning of year End of year 20,816 16,677 1,049 1,015 C. d. a. Determine the accounts receivable turnover for each company. Round all computations to one decimal place. b. Determine the days' sales in receivables for each company. Round all computations to one decimal place. Evaluate the relative efficiency in collecting accounts receivables between the two companies. What might explain this difference?