a. Select 5 ratios from the list below. b. Using the attached Consolidated Balance Sheet and Consolidated Income Statement for Amazon, compute your selected ratios using 2019 data, (2018 is to be used only in the computations requiring information from both periods) and give a short description of why each of your selected ratios is important to a company. Each correct answer will be worth 10 points, for a total of 50 available points for the assignment. (See the highlighted section below.) c. After completing your computations for the 5 selected ratios, use the Consolidated Balance Sheet to prove that Amazon's Balance Sheet is truly in balance by first displaying the Accounting Equation and then using it to determine if the Balance Sheet for Amazon in 2019 is truly in balance. d. Each ratio must be clearly identified and computed clearly so that I can easily follow your calculations. The completed project can be submitted to me (Mhassell@odu.edu) in .pdf format, Microsoft Word format, Excel format or even using photographs. Please DO NOT use Google Docs. I will not review any submissions that are not in one of the formats I have listed as permissible e. The assignment must be submitted to me no later than August 4, 2022, however, you may submit it any time before the deadline. Decision Analysis Tools - Select 5 Return on assets Days sales in inventory Debt ratio Accounts receivable turnover Profit margin Total asset turnover Current ratio Acid test ratio Gross margin ratio Inventory turnover Times interest earned Debt to equity ratio Basic earnings per share Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions Total net sales Dec. 31, 2019 $ 280,522 $ 232,887 12 Months Ended Dec. 31, 2018 Dec. 31, 2017 $177,866 Operating expenses: Cost of sales Fulfillment Technology and content Marketing 165,536 139,156 111,934 40,232 34,027 25,249 35,931 28,837 22,620 18,878 13,814 10,069 General and administrative 5,203 4,336 3,674 Other operating expense (income), net 201 296 Total operating expenses 265,981 220,466 Operating income Interest income Interest expense Other income (expense), net Total non-operating income (expense) Income before income taxes Provision for income taxes Equity-method investment activity, net of tax Net income 14,541 12,421 214 173,760 4,106 832 440 202 (1,600) (1,417) (848) 203 (183) 346 (565) (1,160) (300) 13,976 11,261 3,806 (2,374) (1,197) (769) (14) 9 (4) $ 11,588 $ 10,073 $3,033 Basic earnings per share $23.46 $20.68 $6.32 Diluted earnings per share Weighted-average shares used in computation of earnings per share: $ 23.01 $ 20.14 $6.15 Basic (in shares) Diluted (in shares) Net product sales Total net sales Net service sales Total net sales 494 504 487 500 480 493 $ 160,408 $141,915 $118,573 $ 120,114 $ 90,972 $ 59,293 Consolidated Balance Sheets - USD ($) $ in Millions Dec. 31, 2019 Dec. 31, 2018 Current assets: Cash and cash equivalents $ 36,092 $31,750 Marketable securities Inventories 18,929 9,500 20,497 17,174 Accounts receivable, net and other Total current assets Property and equipment, net Operating leases Goodwill Other assets Total assets Current liabilities: Accounts payable Accrued expenses and other Unearned revenue Total current liabilities Long-term lease liabilities 20,816 16,677 96,334 75,101 72,705 61,797 25,141 0 14,754 14,548 16,314 11,202 225,248 162,648 47,183 38,192 32,439 23,663 8,190 6,536 87,812 68,391 39,791 9,650 23,414 23,495 12,171 17,563 Long-term debt Other long-term liabilities Commitments and contingencies (Note 7) Stockholders' equity: Preferred stock, $0.01 par value: Authorized shares - 500 Issued and outstanding shares - none 0 0 Common stock, $0.01 par value: Authorized shares - 5,000 Issued shares - 507 and 514 Outstanding shares - 484 and 491 5 5 Treasury stock, at cost (1,837) (1,837) Additional paid-in capital 33,658 26,791 Accumulated other comprehensive income (loss) (986) (1,035) Retained earnings 31,220 19,625 Total stockholders' equity 62,060 43,549 Total liabilities and stockholders' equity $225,248 $ 162,648