Analyze and compare Amazon.com and Wal-Mart Amazon.com, Inc. (AMZN) is one of the largest internet retailers in the world. Wal-Mart Stores, Inc. (WMT) is the largest retailer in the United States. Amazon and Wal-Mart compete in similar markets; however, Wal-Mart sells through both traditional retail stores and the internet, while Amazon sells only through the internet. Interest expense and income before income tax expense from the financial statements of both companies for two recent years follow (in millions): Amazon Year 2 Year 1 $459 Interest expense Income (loss) before income tax expense 1,568 a Compute the times interest earned ratio for both companies for the two years. Round your answers to one decimal place. Walmart Year 2 $484 3,892 Amazon Year 1 Walmart d. Interpret Walmart's interest coverage from Year 1 to Year 2. Year 2 e. Which company appears to have the greater protection for creditors? $2,548 21,638 Year 2 Times Interest Earned Ratio b. Based on your calculations for Amazon above, which of these statements is correct? Year 1 $2,461 24,799 c. Does a times interest earned ratio less than 1.0 mean that creditors will not get paid interest? Year 1

Analyze and compare Amaron,com and Wal-Mart compete in similar markets; however, Wal-Mart sells through beth traditocul retail stores and the internet, while Amaron seibs only through the internet. Interent expense ant incorne before income tax expense from the financel statements of both combanies for two recent vears follow (in millons): Compute the times interevt earned ratio for both companies for the two years: Round your anywers to one decimal place. b. Based on your calculations for Arriaton above, which of these statements is correct? c. Does o times interest earned ratio less than 1.0 mean that cred-ors will not get paid interest? d. Imterpret Walmart's interest coverage from Year 1 to Year 2 e. Which compacy oppears to have the greater profection tor cieditors? Analyze and cempare Amazon.com and Wal-Mart Amazon,com, Inc. (MNZN) is one of the largest intemet retailers in the world. Wal Mart Stores, Inc. (WMD) is the largest.retailer in the United States. Amatoa and WaF-Mart incorve before income tax expense from the finanoal statements of both companies for two fecent years follow (in millions): a. Compute the times interest earned rabo for both companies for the twa years. Found your answers to one decimal place. b. Dused of your calculations for Amaton above, which of these statoments is correct? 6. Does a times interest earned ratio less than 1.0 mean that creditors will not get paid interest? d. Interper Walmart Whterest coversge trom Yeat it Yoar 2 . e. Which company eppeans to have the greater prefection for credtors