Amazon Current liabilities Current assets Cash Short-term investments Accounts receivable Inventories Other current assets Total current...

   

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Amazon Current liabilities Current assets Cash Short-term investments Accounts receivable Inventories Other current assets Total current assets $31,327 $11,729 Accounts payable $16,459 $5,122 Other current liabilities 11,630 2,314 Total current liabilities $28,089 7,436 1. Compute working capital for each company 2. Compute the current ratio for each company. (Round to one decimal place.) 3. Compute the quick ratio for each company. (Round to one decimal place.) 4. Can the working capital be usefully compared between the two companies? 5. Which company has the greater debt-paying ability according to the current ratio? 6. Which company has the greater short-term debt-paying ability according to the quick ratio? 7. Why are the results different between (E) and (F)? (Hint Perform a vertical analysis of the current assets.) $14,557 2,859 5,612 Best Buy $ 2,432 1,456 1,280 8,299 5,174 1,387 Amazon Current liabilities Current assets Cash Short-term investments Accounts receivable Inventories Other current assets Total current assets $31,327 $11,729 Accounts payable $16,459 $5,122 Other current liabilities 11,630 2,314 Total current liabilities $28,089 7,436 1. Compute working capital for each company 2. Compute the current ratio for each company. (Round to one decimal place.) 3. Compute the quick ratio for each company. (Round to one decimal place.) 4. Can the working capital be usefully compared between the two companies? 5. Which company has the greater debt-paying ability according to the current ratio? 6. Which company has the greater short-term debt-paying ability according to the quick ratio? 7. Why are the results different between (E) and (F)? (Hint Perform a vertical analysis of the current assets.) $14,557 2,859 5,612 Best Buy $ 2,432 1,456 1,280 8,299 5,174 1,387

Answer rating: 100% (QA)

A Amazon 323800 B C Amazon Current ra... View the full answer