The financial statements of Amazon.com, Inc. are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc.

Question:

The financial statements of Amazon.com, Inc. are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E.

Instructions

(a) Based on the information contained in these financial statements, compute the following values for each company for the most recent fiscal year.

(1) Accounts receivable turnover. (For Amazon.com, use "Net product sales." Assume all sales were credit sales.)

(2) Average collection period for accounts receivable.

(b) What conclusions concerning the management of accounts receivable can be drawn from these data?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...