Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 2017 2016 Net operating profit after tax (NOPAT)

image text in transcribedimage text in transcribed

Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 2017 2016 Net operating profit after tax (NOPAT) $9,880 $2,900 $2,300 Net income 9,066 2,730 2,134 Operating profit 11,179 3,695 3,767 Interest expense 1,346 806 460 Cash from operating activities 27,651 16,529 15,483 Current assets 67,591 54,177 41,203 Current liabilities 64,971 54,989 41,625 Cash and cash equivalents 28,575 18,470 17,401 Marketable securities 8,550 9,418 5,982 Total debt 22,320 23,506 7,309 Assets 146,383 118,179 75,062 Liabilities 113,144 98,421 60,911 Equity 41,372 26,324 18,321 Net operating assets (NOA) 24,504 20,393 948 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%). 2017 2018 96 RNOA ROE 96 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. 2017 Times interest earned Cash from operating activities to total debt 2018 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 Current ratio Quick ratio 2017 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 Total debt to equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions