Continuing Company Analysis-Amazon and Best Buy Ratio of liabilities to stockholders' equity Amazon.com, Inc. is one of the largest Internet retailers in the world. We will use Amazon as a continuing company exercise to reinforce the various tools and techniques for analyzing financial statements. We will begin with the ratio of liabilities to stockholders' equity. Ratios can be used to compare companies in the same industry. For Amazon, there are a number of competitors that sell media, electronic, and other merchandise. Best Buy, Inc. is one such company. The following total liabilities and stockholders' equity information (in millions) is provided for Amazon and Best Buy for the end of a recent year: Amazon Best Buy $43,764 $10,024 Total liabilities Total stockholders' equity 10,74 3,989 a. Compute the ratio of liabilities to stockholders' equity for each company. (Round to two decimal places.) Liabilities to stockholders' equity ratio Amazon Best Buy b. What does margin of protection to creditors mean? 1. The ratio of total liabilities to stockholders' equity. 2 The ratio of current liabilities to total liabilities. 3. The ratio of total liabilities to total assets 4. The ratio of current liabilities to total assets