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Question 2 Not complete Marked out of 16.00 Flag question Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information

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Question 2 Not complete Marked out of 16.00 Flag question Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 2017 2016 Net operating profit after tax (NOPAT) 511,527 $3,383 $2,684 Net income 10.577 3,185 2,490 Operating profit 13,042 4,311 4,395 Interest expense 1,587 950 542 Cash from operating activities 32,259 19,283 18,063 Current assets 78,856 63,207 48,070 Current liabilities 76.598 64,829 49,074 Cash and cash equivalents 33,338 21,548 20,301 Marketable securities 9,975 10.987 6,979 Total debt 26,314 27,712 8,617 Assets 170,780 137.876 87,572 Liabilities 133,391 116,033 71,811 Equity 48,775 31,034 21,599 Net operating assets (NOA) 28,889 24,042 1,118 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 % RNOA 2017 0 % 0% ROE 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. 2018 2017 0 0 Times interest earned Cash from operating activities to total debt 0 0 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 2017 0 0 Current ratio Quick ratio 0 0 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 Total liabilities-to-equity 0 Total debt to equity

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