Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

the company being examined is amazon. thank you! 6. Liquidity and Solvency Ratios and Conclusions: Compute the following ratios for the most recent two years,

the company being examined is amazon. thank you! image text in transcribed
image text in transcribed
image text in transcribed
6. Liquidity and Solvency Ratios and Conclusions: Compute the following ratios for the most recent two years, show all values in the computations: 1. Current ratio 2. Accounts receivable turnover 3. Debt ratio 4. Debt-to-equity ratio 5. Total asset turnover Based on the results above, what conclusions can you make about the liquidity and solvency of the company? Hidp- Please use a format like the one below for the ratios to clearly identify the components and result of the ratio. If you are using an average, show all of the values to arrive at the average. Be careful to format the ratio correctly, (percentage, decimal places, dollars, etc) See the textbook/eBook for the formulas and formatting; For example, for the current ratio: Current Ratio: Current Assets/Current Liabilities 2020:$550,000/$210,000=2.62019:$533,000/$243,000=2.2 Bidp. When asked to make conclusions relative to the ratios, add values. For example, "the current ratio increased from 2.2 to 2.6 an increase of 4 which means the company is more capable of paying its obligations" Don't just simply state "the current ratio increased which means the company is more capable of paying its obligations." Give your analysis value by adding the values! H. Profitability Ratios and Conclusions: Compute the following profitability ratios of the company for the most recent two years, show all values in the computations: 1. Profit margin ratio 2. Return on total assets 3. Return on equity 4. Basic earnings per share Based on the results above, what conclusions can you make about the company's overall profitability and efficient use of assets? Liquidity and Solvency Ratios Compute the liquidity and solvency ratios for the most recent two years showing all values and make conclusions about the results. If you are using an average, show all of the values to arrive at the average. Please refer to the project for complete instructions. Profitability Ratios Compute the profitability ratios for the most recent two years showing all values and make conclusions about the results. Please refer to the project for complete instructions. If you were assigned Amazon, please use the following financial statements and additional information

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Commercial Printing IRS Audit Techniques Guide

Authors: Internal Revenue Service

1st Edition

1304133753, 978-1304133755

More Books

Students also viewed these Accounting questions

Question

Draw and explain the operation of LVDT for pressure measurement

Answered: 1 week ago

Question

Explain basic guidelines for effective multicultural communication.

Answered: 1 week ago

Question

Identify communication barriers and describe ways to remove them.

Answered: 1 week ago

Question

Explain the communication process.

Answered: 1 week ago