Question: Ratios (Decision Analysis Tools) Instructions: Please read carefully. a. Select 5 ratios from the list below. b. Using the attached Consolidated Balance Sheet and Consolidated

Ratios (Decision Analysis Tools) Instructions: Please read carefully. 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. c. After completing your computations for the 5 selected ratios, use the Consolidated Balance Sheet to prove that Amazons 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. Decision Analysis Tools Select 5 Return on assets Days sales in inventory Debt ratio Accounts receivable turnover Profit margin Total asset turnover Current ratio Times interest earned Acid test ratio Debt to equity ratio Gross margin ratio Basic earnings per share Inventory turnover

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!