Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN: 9780470458365
Author: Erwin Kreyszig
Publisher: Wiley, John & Sons, Incorporated
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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   $135,987   $39,528
Accounts receivable:        
 Beginning of year   5,654   1,280
 End of year   8,339   1,162

a.  Determine the accounts receivable turnover for each company. Round all calculations to one decimal place.

    Amazon   Best Buy
Accounts Receivable Turnover   fill in the blank 1   fill in the blank 2

 

b.  Determine the number of days’ sales in receivables for each company. Use 365 days and round all calculations to one decimal place.

    Amazon   Best Buy
Number of Days’ Sales in Receivables   fill in the blank 3   fill in the blank 4
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