Use the consolidated financial statements and the data in Amazon.com, Inc. s annual report (Appendix A at the end of the book) to evaluate the company’s comparative performance for 2008 versus 2007.

Does the company appear to be improving or declining in the following dimensions?

Requirements

1. The ability to pay its current liabilities

2. The ability to sell inventory and collect receivables

3. The ability to pay long-term debts

4. Profitability

5. Cash flows from operations

6. The potential of the company’s stock as a long-term investment (Challenge)