Chat with AI
Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535 Exercise 32
Continuing Company Analysis-Amazon: Accounts receivable turnover and number of days' sales in receivables
Amazon.com, Inc. is one of the largest Internet retailers in the world. Best Buy, Inc. 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):
A. Determine the accounts receivable turnover for each company. (Round all calculations to one decimal place.)
B. Determine the number of days' sales in receivables for each company (Round all calculation to one decimal place.)
C. Evaluate the relative efficiency in collecting accounts receivables between the two companies.
D. What might explain this difference?
Amazon.com, Inc. is one of the largest Internet retailers in the world. Best Buy, Inc. 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):
A. Determine the accounts receivable turnover for each company. (Round all calculations to one decimal place.)
B. Determine the number of days' sales in receivables for each company (Round all calculation to one decimal place.)
C. Evaluate the relative efficiency in collecting accounts receivables between the two companies.
D. What might explain this difference?
Explanation
Verified
Verified
Classification of Receivables
In any or...
Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
