The data in this case come from the financial reports of Amazon.com, Inc.*
a. Amazon had a deficit in stockholders’ equity from 2000–2004. During this time period, Amazon increased cash and cash equivalents, end of period. Comment on how this was accomplished.
b. Compute the debt ratio for the period 1999–2008. Comment on the results.
c. Comment on the importance of net cash provided by financing activities 1998–2002.
d. Comment on the trend in net cash provided by operating activities 2000–2008.
e. Comment on the trend in net sales vs. the trend in net income (loss).
f. Comment on the market decline between 1999 and 2001.
1. Compute the total stock market price (outstanding shares of common X market price per share) for the period 1999–2008.
2. Compare the total stock market price on f(1) with the stockholders’ equity. Comment.
g. Compute the price/earnings ratio for the period 1999–2008.
h. Does the future look good for Amazon.com? Comment.