Comparative figures for Best Buy, Circuit City, and RadioShack follow. Requ...

Comparative figures for Best Buy, Circuit City, and RadioShack follow.

Required

1. Compute the accounts receivable turnover for Best Buy, Circuit City, and RadioShack for each of the

two most recent years using the data shown.

2. Using results from part 1, compute how many days it takes each company, on average, to collect

receivables. Why are these periods so short? Do you believe that receivables are actually collected

this quickly? Explain.

3. Which company is more efficient in collecting its accounts receivable? Explain.