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please help with this accounting hw problem:) Instructions Amazon.com, Inc. is one of the largest Internet retailers in the world. Best Buy, Inc. is a
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please help with this accounting hw problem:)
Instructions Amazon.com, Inc. is one of the largest Internet retailers in the world. Best Buy, Inc. is a leading retailer of consumer electronics and media products in the United States. Amazon and Best Buy compete in similar markets; however, Best Buy sells through both traditional retail stores and the Internet, while Amazon sells only through the Internet. Current asset and current liability information from recent financial statements are as follows (in Millions): 1 Amazon Best Buy 2 Current assets 5 Cash $14.557.00 $2.432.00 4 Short-term investments 2.859.00 1,456.00 Accounts receivable 1,280.00 5,612.00 8,299.00 5.174.00 6 Inventories 0.00 Other current assets 2 1,38700 $31,327,00 $11,729.00 Total current assets 3 Current liabilities 10 Accounts payable $16,459.00 $5,122.00 11,650.00 2.314.00 Other current abilities $28,089.00 Total abilities 57,436.00 Required: a. Compute working capital for each company. b. Compute the current ratio for each company. Round to one decimal place. C. Compute the quick ratio for each company. Round to one decimal place. d. Can the working capital be usefully compared between the two companies? Explain. e. Which company has the greater debt-paying ability according to the current ratio? f. Which company has the greater short-term debt-paying ability according to the quick ratio? g. Why are the results different between (e) and (0? (Hint: Perform a vertical analysis of the current assets.) Check My Work a. Compute working capital for each company (in millions). Working Capital Amazon: Best Buy b. Compute the current ratio for each company. Round to one decimal place. Current Ratio Amazon: Best Buy c. Compute the quick ratio for each company, Round to one decimal place. Quick Ratio Amazon: Best Buy a Can the working capital be usefully compared between the two companies ? because working capital good measure for comparing the liquidity of two companies of different sizes e. Which company has the greater debt.paying ability according to the current ratio ? has the greater debt-paying ability according to the current ratio, e. Which company has the greater debt-paying ability according to the current ratio? has the greater debt-paying ability according to the current ratio. f. Which company has the greater short-term debt-paying ability according to the quick ratio? has the greater debt-paying ability according to the quick ratio. g. Why are the results different between (e) and (0? Amazon Best Buy 7 Other current assets 0.00 1,387.00 Total current assets $31,327.00 $11,729.00 9 Current liabilities: 10 Accounts payable $16,459.00 $5,122.00 11 Other current liabilities 11,630,00 2,314.00 12 Total Liabilities $28,089.00 $7,436,00 g. Why are the results different between (e) and (0)? Amazon Best Buy Current assets: Cash % % % Short-term investments % % Accounts receivable % % Inventories % % Other current assets % % % Total current assets % %
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