Unit 6 Case problem 
Q1. Why is Amazon's cash cycle so much shorter than that of competitor Barnes & Noble? How does this comparison affect financial management decisions of other retailers?
The market value of Amazon is much higher than Barnes & Noble. They are also in better marketing position then Barnes and Noble. Barnes & Noble has been on the rocks for a long time and failed to make headway in international markets with their Nook ereaders. The best answer I can give is because Amazon is a much larger company with diversified products. Barnes & Noble is best known for selling books, games, and minor accessories. Amazon sells practically everything. Barnes & Noble has declined in recent years largely because the print book market is drying up. Ereaders and used bookstores have been driving this. If Barnes and Noble were able to compete at the same level as Amazon and offered Ebook sales online as well as in store, they could be a major competitor to Amazon.
Meanwhile, Amazon pioneered the digital ebook market with their Kindle and set the bar for competitors like Barnes & Noble. Even if Barnes and noble were able to compete with Amazon in the book sales market, Amazon would have plenty of revenue streaming in from third party sellers and the many, many alternate products they offer at their online store as well as affiliates. Barnes & Noble has no such revenue stream. This means their cash cycle is shorter compared to a Amazon.com, who has become a major player in the Ebook market.
Q2. How does Boeing achieve a cash cycle of negative 100 days?
Negative Cash Cycles-The lower the cash cycle the better it looks for a company’s finances, so a negative cash cycle is very desirable. A negative cash cycle is one in which you don’t pay for your inventory or materials until after you’ve sold the final product associated with them. It means you’re using your working capital as efficiently as possible and have available cash for other things.Not all companies can achieve a negative cash
The market value of Amazon is much higher than Barnes & Noble. They are also in better marketing position then Barnes and Noble. Barnes & Noble has been on the rocks for a long time and failed to make headway in international markets with their Nook ereaders. The best answer I can give is because Amazon is a much larger company with diversified products. Barnes & Noble is best known for selling books, games, and minor accessories. Amazon sells practically everything. Barnes & Noble has declined in recent years largely because the print book market is drying up. Ereaders and used bookstores have been driving this. If Barnes and Noble were able to compete at the same level as Amazon and offered Ebook sales online as well as in store, they could be a major competitor to Amazon.
Meanwhile, Amazon pioneered the digital ebook market with their Kindle and set the bar for competitors like Barnes & Noble. Even if Barnes and noble were able to compete with Amazon in the book sales market, Amazon would have plenty of revenue streaming in from third party sellers and the many, many alternate products they offer at their online store as well as affiliates. Barnes & Noble has no such revenue stream. This means their cash cycle is shorter compared to a Amazon.com, who has become a major player in the Ebook market.
Q2. How does Boeing achieve a cash cycle of negative 100 days?
Negative Cash Cycles-The lower the cash cycle the better it looks for a company’s finances, so a negative cash cycle is very desirable. A negative cash cycle is one in which you don’t pay for your inventory or materials until after you’ve sold the final product associated with them. It means you’re using your working capital as efficiently as possible and have available cash for other things.Not all companies can achieve a negative cash