User Account

All Pages

Determine the accounts receivable turnover for year

Assignment Help Financial Accounting
Reference no: EM132475892

Best Buy is a specialty retailer of consumer electronics, including personal computers, entertainment software, and appliances. Best Buy operates retail stores in addition to the Best Buy, Media Play, On Cue, and Magnolia Hi-Fi websites.

For two recent years, Best Buy reported the following (in millions):

                                                               Year 2                        Year 1

Sales                                                     $39,528                    $40.339

Accounts receivable at end of year               1,162                         1,280

Assume that the accounts receivable (in millions) were $1,308 at the beginning of fiscal Year 1.

Question 1: Compute the accounts receivable turnover for Year 2 and Year 1. Round to two decimal places.

Question 2: Compute the days' sales in receivables at the end of Year 2 and Year 1. Use 365 days and round to one decimal place.

Question 3: What conclusions can be drawn from (1) and (2) regarding Best Buy's efficiency in collecting receivables?

Question 4: What assumption did we make about sales for the Best Buy ratio computations that might distort the ratios and therefore cause the ratios not to be comparable for Year 2 and Year 1?

Reference no: EM132475892

Questions Cloud

Create and show an amortization schedule for term of lease : Show appropriate journal entries for High Time Tours from the beginning of the lease through March 31, 2018. Appropriate adjusting entries
Calculate the effective interest rate associated with loan. : Calculate the effective interest rate associated with the loan. (Round answer to the nearest whole percentage.) What net amount is received on 1 January 20X8.
What sort of retirement plan would recommend they adopt : What key features of the plan (participation, vesting and benefit accrual) would recommend? What sort of retirement plan would you recommend they adopt?
What impact do you think the american workplace : What impact do you think the American workplace has on families in the United States such as men and women?
Determine the accounts receivable turnover for year : What assumption did we make about sales for the Best Buy ratio computations that might distort the ratios and therefore cause the ratios not to be comparable
Microaggressions from the typical social faux : What separates microaggressions from the typical social faux pas in which someone says something we'd consider to be in bad taste?
Myth of the model minority on others : What other ways does society place the myth of the model minority on others?
Being a student is a struggle in itself : Being a student is a struggle in itself, but for the Asian American student and the standards they need to live up to makes it even harder
Describe a specific element of culture : Describe a specific element of culture that has influenced you. include if the element of culture is a material or nonmaterial element.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd