Refer to Amazon com, Inc s Consolidated financial statements in Appendix A at the end of this book 1 Examine the account marketable securities in the consolidated balance sheet a What does this account consist of b Why do you think the company has made these investments c What percentage change has...

Req 1 a According to Note 1 the Marketable Securities account includes short to intermediateterm fixed income securities and AAArated money market fun ...

Refer to Amazon.com, Inc.s Consolidated financial statements in Appendix A at the end of this book. 1.

Question:

Refer to Amazon.com, Inc.’s Consolidated in Appendix A at the end of this book.
1. Examine the account “marketable securities” in the consolidated What does this account consist of?
b. Why do you think the company has made these investments?
c. What percentage change has occurred in short-term investments from December 31, 2009, to December 31, 2010? What management business strategy might this reveal?
d. Using the financial statement footnotes for reference, explain how Amazon.com, Inc., accounts for marketable securities. What footnote contains this information?
e. Has the company profited from holding its of marketable securities during the year ended December 31, 2010? How do you know?
2. Using the “Description of Business” section of Note 1 as a reference, describe how Amazon.com, Inc., recognizes revenue.
3. The fourth account listed on Amazon.com’s Consolidated is called net and other.” What does the “net” mean? The “other”?
4. Refer to Note 1. What kinds of are included in Amazon.com, Inc.’s receivables?
5. How much is the allowance for doubtful accounts in 2010 and 2009?
6. Evaluate Amazon.com, Inc.’s liquidity as of December 31, 2010, and compare it with 2009. What other information might be helpful in evaluating these statistics?

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