Use Amazon coms balance sheet and the Note 1 data on Allowance for doubtful accounts in Appendix A at the end of this book Requirements 1 Do accounts receivable appear to be an important asset for Amazon com 2 Assume that all of Accounts receivable, Net, and Other is accounts receivable Further ass...

Req 1 Accounts receivable at yearend 2009 amount to nearly on ...

Use Amazon.coms balance sheet and the Note 1 data on Allowance for doubtful accounts in Appendix A

Question:

Use Amazon.com’s and the Note 1 data on “Allowance for doubtful accounts” in Appendix A at the end of this book.
Requirements
1. Do appear to be an important asset for Amazon.com?
2. Assume that all of Net, and Other” is Further assume that gross receivables at December 31, 2009, were $908 million. Answer the following questions based on these data, plus what is reported on the How much did customers owe Amazon.com at December 31, 2009?
b. How much did Amazon.com expect to collect from customers after December 31, 2008?
c. Of the total receivable amount at December 31, 2009, how much did Amazon.com expect not to collect?
3. Compute Amazon.com’s acid-test ratio at the end of 2009. Marketable securities are short-term investments. Disregard deferred tax assets. If all the current liabilities came due immediately, could Amazon pay them?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...