Question: Amazon.com, Inc.'s financial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Instructions for accessing and using

Amazon.com, Inc.'s financial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Instructions for accessing and using the complete annual reports of Amazon and Wal-Mart, including the notes to the financial statements, are also provided in Appendices D and E, respectively.

Instructions

(a) Based on the information in these financial statements, compute the following ratios for each company (for the most recent year shown). (Assume all sales are credit sales.)

(1) Accounts receivable turnover.

(2) Average collection period for receivables.

(b) What conclusions about managing accounts receivable can you draw from these data?

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