Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 Net operating profit after tax (NOPAT) $12,186 Net income 11,181 13,787 1,474 Operating profit Interest expense Cash from operating activities Current assets Current liabilities Cash and cash equivalents Marketable securities Total debt Assets Liabilities Equity Net operating assets (NOA) RNOA ROE a. Compute profitability measures RNOA and ROE for 2018 and 2017. In which year are the measures stronger? Round answers to one decimal place (ex: 0.2345 = 23.5%). 2018 0% x 0% * 2017 Current ratio Quick ratio 34,103 20,385 19,095 83,362 66,819 50,817 71,127 60,198 45,569 35,243 22,779 21,461 10,545 11,615 7,378 24,435 25,733 8,002 180,539 145,754 92,576 123,863 107,745 66,682 45,291 28,817 20,056 26,826 22,325 1,038 b. Compute coverage metrics Times interest earned and Cash from operating activities to total debt for 2018 and 2017. Round answers to two decimal places. Times interest earned Cash from operating activities to total debt 16% * 45.4% * Total liabilities-to-equity 0 x 0 x 2017 2016 $3,576 $2,837 3,367 2,632 4,558 4,646 882 503 2017 c. Determine liquidity for the company for 2018 and 2017 by computing the current ratio and quick ratio. Round answers to two decimal places. 2018 0 x 0 x 0 x 2018 5.2 x 5.2 x d. Compute the Total liabilities-to-equity ratio and the Total debt to equity ratio for 2018 and 2017. Round answers to two decimal places. 2018 2017 2017 5.2 x 5.2 x 0 x