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tor assignment-take&inprog akeAssignmentMain.do?invoker-assig Calculator Continuing Company Analysis-Amazon: Times interest earned Amazon.com, Inc, is one of the largest Internet retailers in the world. Walmart Stores, Inc.

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tor assignment-take&inprog akeAssignmentMain.do?invoker-assig Calculator Continuing Company Analysis-Amazon: Times interest earned Amazon.com, Inc, is one of the largest Internet retailers in the world. Walmart Stores, Inc. is the largest retailer in the United States. Amazon and Walmart compete in similar markets; however, Walmart sells through both traditional retail stores and the Internet, while Amazon sells only through the Internet. Interest expense and income before income tax expense from the financial statements of both companies for two recent years follow (in millions): Amazon Walmart Year 2 Year 1 Year 2 Year 1 $210 41$2,461 2.335 interest expense Income (loss) before income tax expense a. Compute the times interest earmed ratio for both companies for the two years. Round your answers to one deomal place 274 24,799 24,656 Amazon Walmart Year 2 Year 1 Year 2 Year 1 Times Interest Earned Ratico b. Based on your calculations for Amazon above, which of these statements is correct? c. Does a times interest earned ratio less than 1.0 mean that creditors yill not get paid interest? d. Interpret Walmart's interest coverage from Year 1 to Year 2 e. Which company appears to have the greater protection for creditors? 10 mone Check My Work uses remaining 8 5

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