Question

Amazon.com Inc.’s financial statements are presented in Appendix D. Financial state-
ments for Wal-Mart Stores, Inc. are presented in Appendix E. Instructions for accessing and using
the complete annual reports of Amazon and Wal-Mart, including the notes to the financial state-
ments, are also provided in Appendices D and E, respectively.
Instructions
(a) At December 31, 2011, what was Amazon’s largest current liability account? What were its total
current liabilities? At January 31, 2012, what was Wal-Mart’s largest current liability account?
What were its total current liabilities?
(b) Based on information in these financial statements, compute the following 2011 values for
Amazon and 2012 values for Wal-Mart:
(1) Working capital.
(2) Current ratio.
(c) What conclusions concerning the relative liquidity of these companies can be drawn from
these data?




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  • CreatedJanuary 30, 2014
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