MAD CHAPTER 13

...............

Analyze and compare Amazon.com, Best Buy, and Wal-Mart 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, while Wal-Mart Stores, Inc. (WMT) is the leading retailer in the United States. Amazon, Best Buy, and Wal-Mart compete in similar markets. Best Buy and Wal- Mart sell through both traditional retail stores and the Internet, while Amazon sells only through the internet. Sales and cash flow information from recent annual reports for all three companies is as follows (in millions): Sales Cash flows from operating activities Purchases of property, plant, and equipment Amazon Best Buy Wal-Mart $135,987 $39,403 $485,873 16,443 2,545 31,530 (6,737) (582) (10,619) a. Determine the free cash flow for all three companies. Amazon: $ 4,893 x Best Buy: $ Wal-Mart: $ b. Compute the ratio of free cash flow to sales for all three companies. Round percentages to one decimal place Amazon: Amazon: 0 Best Buy: % % Wal-Mart