Amazon.com, Inc. is the world's leading Internet retailer of merchandise and media. Amazon also designs and sells electronic products, such as e-readers. Netflix, Inc. is the world's leading Internet television network. Both companies compete in the digital media and streaming space. However, Netflix is more narrowly focused in the digital streaming business than is Amazon. Sales and average book value of fixed assets information (in millions) are provided for Amazon and Netflix for a recent year a follows: Amazon Netflix Sales $88,988 $5,505 Average book value of fixed assets 13,958 142 a. Compute the fixed asset turnover ratio for each company. (Round to one decimal place.) Amazon Netflix b. Which company is more efficient in generating sales from fixed assets? c. How would you explain the difference in the fixed assets turnover of both the companies?

Avon Products, Inc., located in New York City, is one of the world’s largest producers of beauty and related products. The company's consolidated balance sheets for the 2016 and 2015 fiscal years included the following ($ in thousands):    2016   2015 Current assets:           Receivables, less allowances of $131,100 in2016 and $86,700 in 2015 $ 458,900   $ 440,000   A disclosure note accompanying the financial statements reported the following ($ in thousands):    Year Ended     2016     2015     (In thousands)   Calculation of account receivables, net:               Receivables $ 590,000     $ 526,700   Less: allowance for doubtful accounts   (122,900 )     (77,600 ) Less: reserve for product returns   (8,200 )     (9,100 ) Trade accounts receivable, net: $ 458,900     $ 440,000     Assume that the company reported bad debt expense in 2016 of $191,000 and had products returned for credit totaling $187,000 (sales price). Net sales for 2016 were…

Computer Associates International, Inc., the world's leading business software company, delivers the end-to-end infrastructure to enable e-business through innovative technology, services, and education. Recently, Computer Associates had 19,000 employees worldwide and revenue of over $6 billion. The following information is from the company's annual report. Computer Associates International, Inc. Management Discussion The Company has experienced a pattern of business whereby revenue for its third and fourth fiscal quarters reflects an increase over fırst- and second-quarter revenue. The Company attributes this increase to clients' increased spending at the end of their calendar year budgetary periods and the culmination of its annual sales plan. Since the Company's costs do not increase proportionately with the third- and fourth-quarters' increase in revenue, the higher revenue in these quarters results in greater profit margins and income. Fourth-quarter profitability is traditionally…

Amazon.com, inc. is one of the largest Internet retailers in the world. Wal-Mart is the largest retailer in the United States. Amazon and Wal-Mart compete in similar markets; however, Wal-Mart sells through both traditional retail stores and the Internet, while Amazon sells only through the Internet. Earnings and Common Stock Outstanding information was obtained from recent financial statements for both companies as follows (in million): Amazon . Wal-Mart Net Income $2,371 $14,694 Average Number of Common Shares Outstanding. . $ 474 $ 3,207 Required: a. Determine the Earnings Per Share for each company. Neither company had Preferred Stock Outstanding. Round to the nearest cent. b. Which company appears more profitable from an Earnings-Per-Share perspective. c. The market price of Amazon Common Stock was $750 per share at a time when Wal-Mart's was $69 per share. How would you explain this difference in Market Price given the Earnings-Per-Share computed in (a) for both companies?