Amazon.com Inc.s financial statements are presented in Appendix D. Financial statements for Wal-Mart Stores, Inc. are presented
Question:
Amazon.com Inc.’s financial statements are presented in Appendix D. Financial statements for Wal-Mart Stores, Inc. are presented in Appendix E. Instructions for accessing and using the complete annual reports of Amazon and Wal-Mart, including the notes to the financial statements, are also provided in Appendices D and E, respectively.
Instructions
(a) At December 31, 2011, what was Amazon’s largest current liability account? What were its total current liabilities? At January 31, 2012, what was Wal-Mart’s largest current liability account? What were its total current liabilities?
(b) Based on information in these financial statements, compute the following 2011 values for Amazon and 2012 values for Wal-Mart:
(1) Working capital.
(2) Current ratio.
(c) What conclusions concerning the relative liquidity of these companies can be drawn from these data?
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso