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 2013 ratios for Amazon and 2014 ratios for Wal-Mart.

(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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ANSWER a 1 Debt to Assets Amazon Total Liabilities Total Assets 62564 Million 64319 Million 097 WalM... View full answer

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