Question: Amazon.com, Inc.s financial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Instructions for accessing and using

Amazon.com, Inc.’s financial statements are presented in Appendix D. Financial statements of 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 statements, are also provided in Appendices D and E, respectively.

Instructions
(a) Based on the information contained in these financial statements, compute the following 2011 ratios for each company.
(1) Debt to assets.
(2) Times interest earned.
(b) What conclusions concerning the companies’ long-run solvency can be drawn from these ratios?

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a Amazon WalMart 1 Debt to assets 1752125278 693 117645193406 608 2 Times interest ... View full answer

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