For: Amazon 2020

Market Update: (Stock price this week) Price_ on date LON G- LIVE D ASSE TS Name of company chosen: Refer to the notes to the financial statements. The first note, "Summary of Significant Ac-counting Policies," provides information about the company's depreciation and amortization methods. You will also need to refer to the other notes to the financial statements and to the fi- nancial statements themselves in order to answer the following questions. IMPORTANT: Indicate the page mumber in which the information was found. THEBASICS Pronerter. plant and equipment 1. What depreciation method does the company use? Page 2. What is the amount of depreciation expense for the current year? Page (Hint: Look at the of Current year Intangiblenssets Last year 3. Does the company have any intangible assets? If so, what are they? Page 4. Does the company report any goodwill? What is the amount? Page FURTHER ANALYSIS 5. Calculate the following: Show your computations. You will find prior years' total assets in the Five-Year Summary of Selected Financial Data. (a) Average useful life of plant assets =DeAreragecostofplantassets pre cia tio n ex pe ns =e= (b) Average age of plant assets = Accumulated Depreciation = Depreciation Expense (c) Asset turnover = Sales = Average total assets current year last year'_ two year's ago (d) Return on assets = Net income = Average total assets current year last year two year's ago 6. What information is provided by: (a) The asset turnover ratio (b) Return on assets 7. Compare the asset turnover ratio and the return on assets computed above to the industry averages. Asset turnover Return on assets How does your company compare to others in the industry? INFORMATION FOR DECLSION MAKING Answer the following questions. Use complete sentences. 8. How does depreciation expense affect cash flow? 9. Comment on the average age of the company's assets relative to their average useful life. Refer to the information obtained in question 5, above. 10. Refer to the investing activities section of the company's cash flow statement. Page What was the amo current year' last year two year's ago 11. Evaluate your company's capital spending. Compute the capital expenditure ratio Cash provided by operating activities = = Capital expenditures Comment on your company's ability to finance its capital spending through operations. (A ratio of 2 would indicate that the company could have purchased twice as much property, plant and equipment as it did without any additional external financing.) FINANCIAL ANALYSIS PROJECT ASSIGNMENT 6 Market Update: (Stock price this week) Price on date_ LIABILITIES Name of company chosen: Refer to the financial statements and notes to the financial statements. The first note, "Summary of Significant Accounting Policies," provides information about the company's ac-counting methods. You will also need to refer to the other notes to the financial statements and to the financial statements themselves in order to answer the following questions. IMPORTANT: Indicate the page mumber on which the information was found. Name of company chosen: Refer to the financial statements and notes to the financial statements. The first note, "Summary of Significant Accounting Policies," provides information about the company's ac-counting methods. You will also need to refer to the other notes to the financial statements and to the financial statements themselves in order to answer the following questions. IMPORTANT: Indicate the page mumber on which the information was found THEBASICS 1. What is the amount of the company's current liabilities? Page This year Last year 2. What is the amount of the company's long-term liabilities? Page This year Last year 3. Refer to the notes to the financial statements. Does the company report any other commitments or contingent liabilities? If yes, provide a description of any con- tingencies discussed. Page 4. Refer to the notes to the financial statements. Does the company disclose any offbalance- 4. Refer to the notes to the financial statements. Does the company disclose any offbalance- sheet financing arrangements? If yes, describe. Page 5. (a) Examine the financial statements and the notes. Does the company report any capi- tal leases? Page What is the amount of the capital lease obligation (liability)? Page This year Last year (b) Refer to the notes to the financial statements. Does the company report any operat- ing leases? If yes, are these leases noncancellable? Page What is the amount of total cash flow commitment under these operating leases? Page What is the definition of a liability? Use complete sentences. Even though they are not recorded as liabilities, do these operating leases seem to meet the defini- tion of a liability? Explain. Use complete sentences. FURTHER ANALYSIS 6. Calculate the following ratios for both years presented in the balance sheet: Show yous computations. 6. Calculate the following ratios for both years presented in the balance sheet: Show you' computations. (a) Current ratio = = Current assets Current liabilities = (current year) =L(prioryear)= (b) Quick or Acid-Test ratio = = Quick assets Current liabilities (prior year) (c) Debt to total assets ratio = = (current year) =TotalassetsTotalliabilities= =( prior year ) 7. Explain what information each of these ratios provides. Use complete sentences. (a) b ) b ) ( c ) 8. Compare the current, quick, and debt to total assets ratios computed above to industry averages. (Remember that the debt to total assets ratio may also be called total debt to equity.) Current ratio Quick ratio Your company Industry Debt to total assets How do the results for your company compare to industry averages? 9. Refer to the financing activities section of the company's cash flow statement. Page (a) What was the amount of new borrowings during each of the years presented? (b) What was the amount of debt repaid during each of the years presented? current year last year two year's ago (c) Did these activities result in a net increase or decrease in the company's cash balance? current year last year two year's ago INFORMATION FOR DECISION MAKING 10. Evaluate the company's debt-paying ability. Use complete sentences. Refer' to the ratios and other' information obtained above. Your analysis should inchide a consideration of un- used lines of credit and of any existing off-balance-sheet financing arrangements. Market Update: (Stock price this week) Price_ on date LON G- LIVE D ASSE TS Name of company chosen: Refer to the notes to the financial statements. The first note, "Summary of Significant Ac-counting Policies," provides information about the company's depreciation and amortization methods. You will also need to refer to the other notes to the financial statements and to the fi- nancial statements themselves in order to answer the following questions. IMPORTANT: Indicate the page mumber in which the information was found. THEBASICS Pronerter. plant and equipment 1. What depreciation method does the company use? Page 2. What is the amount of depreciation expense for the current year? Page (Hint: Look at the of Current year Intangiblenssets Last year 3. Does the company have any intangible assets? If so, what are they? Page 4. Does the company report any goodwill? What is the amount? Page FURTHER ANALYSIS 5. Calculate the following: Show your computations. You will find prior years' total assets in the Five-Year Summary of Selected Financial Data. (a) Average useful life of plant assets =DeAreragecostofplantassets pre cia tio n ex pe ns =e= (b) Average age of plant assets = Accumulated Depreciation = Depreciation Expense (c) Asset turnover = Sales = Average total assets current year last year'_ two year's ago (d) Return on assets = Net income = Average total assets current year last year two year's ago 6. What information is provided by: (a) The asset turnover ratio (b) Return on assets 7. Compare the asset turnover ratio and the return on assets computed above to the industry averages. Asset turnover Return on assets How does your company compare to others in the industry? INFORMATION FOR DECLSION MAKING Answer the following questions. Use complete sentences. 8. How does depreciation expense affect cash flow? 9. Comment on the average age of the company's assets relative to their average useful life. Refer to the information obtained in question 5, above. 10. Refer to the investing activities section of the company's cash flow statement. Page What was the amo current year' last year two year's ago 11. Evaluate your company's capital spending. Compute the capital expenditure ratio Cash provided by operating activities = = Capital expenditures Comment on your company's ability to finance its capital spending through operations. (A ratio of 2 would indicate that the company could have purchased twice as much property, plant and equipment as it did without any additional external financing.) FINANCIAL ANALYSIS PROJECT ASSIGNMENT 6 Market Update: (Stock price this week) Price on date_ LIABILITIES Name of company chosen: Refer to the financial statements and notes to the financial statements. The first note, "Summary of Significant Accounting Policies," provides information about the company's ac-counting methods. You will also need to refer to the other notes to the financial statements and to the financial statements themselves in order to answer the following questions. IMPORTANT: Indicate the page mumber on which the information was found. Name of company chosen: Refer to the financial statements and notes to the financial statements. The first note, "Summary of Significant Accounting Policies," provides information about the company's ac-counting methods. You will also need to refer to the other notes to the financial statements and to the financial statements themselves in order to answer the following questions. IMPORTANT: Indicate the page mumber on which the information was found THEBASICS 1. What is the amount of the company's current liabilities? Page This year Last year 2. What is the amount of the company's long-term liabilities? Page This year Last year 3. Refer to the notes to the financial statements. Does the company report any other commitments or contingent liabilities? If yes, provide a description of any con- tingencies discussed. Page 4. Refer to the notes to the financial statements. Does the company disclose any offbalance- 4. Refer to the notes to the financial statements. Does the company disclose any offbalance- sheet financing arrangements? If yes, describe. Page 5. (a) Examine the financial statements and the notes. Does the company report any capi- tal leases? Page What is the amount of the capital lease obligation (liability)? Page This year Last year (b) Refer to the notes to the financial statements. Does the company report any operat- ing leases? If yes, are these leases noncancellable? Page What is the amount of total cash flow commitment under these operating leases? Page What is the definition of a liability? Use complete sentences. Even though they are not recorded as liabilities, do these operating leases seem to meet the defini- tion of a liability? Explain. Use complete sentences. FURTHER ANALYSIS 6. Calculate the following ratios for both years presented in the balance sheet: Show yous computations. 6. Calculate the following ratios for both years presented in the balance sheet: Show you' computations. (a) Current ratio = = Current assets Current liabilities = (current year) =L(prioryear)= (b) Quick or Acid-Test ratio = = Quick assets Current liabilities (prior year) (c) Debt to total assets ratio = = (current year) =TotalassetsTotalliabilities= =( prior year ) 7. Explain what information each of these ratios provides. Use complete sentences. (a) b ) b ) ( c ) 8. Compare the current, quick, and debt to total assets ratios computed above to industry averages. (Remember that the debt to total assets ratio may also be called total debt to equity.) Current ratio Quick ratio Your company Industry Debt to total assets How do the results for your company compare to industry averages? 9. Refer to the financing activities section of the company's cash flow statement. Page (a) What was the amount of new borrowings during each of the years presented? (b) What was the amount of debt repaid during each of the years presented? current year last year two year's ago (c) Did these activities result in a net increase or decrease in the company's cash balance? current year last year two year's ago INFORMATION FOR DECISION MAKING 10. Evaluate the company's debt-paying ability. Use complete sentences. Refer' to the ratios and other' information obtained above. Your analysis should inchide a consideration of un- used lines of credit and of any existing off-balance-sheet financing arrangements