This case, based on the balance sheet of Amazon.com in Appendix A at the end of the book, will familiarize you with some of the assets and liabilities of that company. Use the Amazon.com balance sheet to answer the following questions.
Requirements
1. Which balance sheet format does Amazon.com use?
2. Name the company’s largest current asset and largest current liability at December 31, 2009.
3. Compute Amazon’s current ratios at December 31, 2009 and 2008. Did the current ratio improve, worsen, or hold steady during 2009?
4. Under what category does Amazon report furniture, fixtures, and equipment?
5. What was the cost of the company’s fixed assets at December 31, 2009? What was the amount of accumulated depreciation? What was the book value of the fixed assets? See Note 3 for the data.