Question: Amazon.com, Inc. s financial statements are presented in Appendix D. Click here to view Appendix D. Financial statements of Wal-Mart Stores, Inc . are presented

Amazon.com, Inc.s financial statements are presented in Appendix D. Click here to view Appendix D.

Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Click here to view Appendix E.

($ in thousands) Amazon Wal-Mart

1.

Working capital

$1,965 $(9,239)

2.

Current ratio

1.04:1 0.86:1

3.

Debt to assets ratio

76.9% 59.5%

4.

Free cash flow

$9,706 $14,695

(b) Discuss the relative liquidity and solvency of the two companies.

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