I need help with problems #4 & #5. thank you in advance!

1. The accounting equation is Assets = Liabilities + Stockholders' Equity. Replacing the words in the accounting equation with dollar amounts, give the company's accounting equation at the end of the current and prior years. Assets Liabilities Equity This year $321,195 227.791 93,404 Last year $225,248 163,188 62,060 2. Calculate the company's current ratio for both this year and the prior year. Show your computations This year: Current assets Current liabilities 321,195 227,791 1.41 Last year 225.248 163,188 = 1.38 Calculate the company's debt to total assets ratio (also called total debt to equity) for both this year and the prior year. Show your computations, This year 227,791 93,404 2.44 Total liabilities Total assets Last year 163,188 62,060 2.63 FURTHER ANALYSIS 4. Prepare common-size balance sheets for the two years presented, expressing each bal- ance sheet item as a percentage of total assets (Total assets - 100%). (Refer to the discussion of vertical analysis in the financial statement analysis chapter of your text.) Use a spreadsheet program such as Excel to do this part of the assignment. Label the spreadsheet "Common Size Analysis - Balance Sheet." Insert the accounts and classifications in column A and the amounts for each of the two years in columns B and C. In columns D and E, use a formula to convert the amounts in columns B and C to percentages. INFORMATION FOR DECISION MAKING 5. Answer the following questions: Use complete sentences. .. In which assets does the company have the most significant investment? b. Is the company financed primarily with debt or equity? Explain using the information ob- tained in questions 1-4. c. Is the debt primarily short-term or long-term? Explain. d. Comment on any significant changes in individual assets or liabilities. Use the information obtained in question 4 c. Comment on any significant changes in the composition of current assets or current liabili- ties. Use the information obtained in question 4. f. Evaluate the company's debt-paying ability. Refer to the information obtained in the previ- ous questions. AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2019 2020 ASSETS Current assets: 36,0925 18,929 20,497 20.816 96.334 72,705 25.141 14,754 16,314 225.248 5 42,122 42,274 23.795 24,542 132,733 113,114 37,553 15.017 22,778 321,195 Cash and cash equivalents $ Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Operating leases Goodwill Other assets Total assets $ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable s Accrued expenses and other Uneared revenue Total current liabilities Long-term lease liabilities Long-term debt Other long-term liabilities Commitments and contingencies (Note 7) Stockholders' equity: Preferred stock, S0.01 par value: Authorized shares - 500 Issued and outstanding shares- none Common stock, 30.01 par value: Authorized shares - 5,000 Issued shares-521 and 527 Outstanding shares - 498 and 503 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive income (loss) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity s See accompanying notes to consolidated financial statements. 47,1835 32,439 8,190 87,812 39,791 23,414 12.171 72,539 44,138 9,708 126,385 52.573 31.816 17,017 5 (1.837) 33.658 (986) 31.220 62,060 225.248 S 5 (1.837) 42.865 (180) 52,551 93,404 321,195 1. The accounting equation is Assets = Liabilities + Stockholders' Equity. Replacing the words in the accounting equation with dollar amounts, give the company's accounting equation at the end of the current and prior years. Assets Liabilities Equity This year $321,195 227.791 93,404 Last year $225,248 163,188 62,060 2. Calculate the company's current ratio for both this year and the prior year. Show your computations This year: Current assets Current liabilities 321,195 227,791 1.41 Last year 225.248 163,188 = 1.38 Calculate the company's debt to total assets ratio (also called total debt to equity) for both this year and the prior year. Show your computations, This year 227,791 93,404 2.44 Total liabilities Total assets Last year 163,188 62,060 2.63 FURTHER ANALYSIS 4. Prepare common-size balance sheets for the two years presented, expressing each bal- ance sheet item as a percentage of total assets (Total assets - 100%). (Refer to the discussion of vertical analysis in the financial statement analysis chapter of your text.) Use a spreadsheet program such as Excel to do this part of the assignment. Label the spreadsheet "Common Size Analysis - Balance Sheet." Insert the accounts and classifications in column A and the amounts for each of the two years in columns B and C. In columns D and E, use a formula to convert the amounts in columns B and C to percentages. INFORMATION FOR DECISION MAKING 5. Answer the following questions: Use complete sentences. .. In which assets does the company have the most significant investment? b. Is the company financed primarily with debt or equity? Explain using the information ob- tained in questions 1-4. c. Is the debt primarily short-term or long-term? Explain. d. Comment on any significant changes in individual assets or liabilities. Use the information obtained in question 4 c. Comment on any significant changes in the composition of current assets or current liabili- ties. Use the information obtained in question 4. f. Evaluate the company's debt-paying ability. Refer to the information obtained in the previ- ous questions. AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2019 2020 ASSETS Current assets: 36,0925 18,929 20,497 20.816 96.334 72,705 25.141 14,754 16,314 225.248 5 42,122 42,274 23.795 24,542 132,733 113,114 37,553 15.017 22,778 321,195 Cash and cash equivalents $ Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Operating leases Goodwill Other assets Total assets $ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable s Accrued expenses and other Uneared revenue Total current liabilities Long-term lease liabilities Long-term debt Other long-term liabilities Commitments and contingencies (Note 7) Stockholders' equity: Preferred stock, S0.01 par value: Authorized shares - 500 Issued and outstanding shares- none Common stock, 30.01 par value: Authorized shares - 5,000 Issued shares-521 and 527 Outstanding shares - 498 and 503 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive income (loss) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity s See accompanying notes to consolidated financial statements. 47,1835 32,439 8,190 87,812 39,791 23,414 12.171 72,539 44,138 9,708 126,385 52.573 31.816 17,017 5 (1.837) 33.658 (986) 31.220 62,060 225.248 S 5 (1.837) 42.865 (180) 52,551 93,404 321,195