SOLVE

4-50 Classified Balance Sheet, Current Ratio, and Quick Ratio Amazon.com, Inc.'s balance sheet (slightly modified) for December 31, 2011, contained the following items ($ in millions): Property and equipment, net Accrued expenses and other Cash and cash equivalents Other noncurrent assets Inventories Other current assets Accounts payable Marketable securities, short-term Accounts receivable, net Goodwill Long-term liabilities Stockholders' equity $ 4,417 3,751 5,269 1,416 4,992 351 11,145 4,307 ? 1,955 2,625 7,757 1. Prepare a December 31, 2011, classified balance sheet for Amazon.com. Include the correct amount for Accounts Receivable. 2. Compute the company's working capital, current ratio, and quick ratio. Compute the quick ratio as (current assets inventory) = current liabilities. 3. Comment on the company's current and quick ratios. In 2010, the current ratio was 1.33 and the quick ratio was 1.02. 4. During 2011, Amazon decreased its Marketable Securities by $678. Suppose the company had not decreased its Marketable Securities but had instead decreased long-term investments (classified as Other Noncurrent Assets) by $678. How would this have affected Amazon's cur- rent ratio? How would it have affected the company's liquidity