The financial statements of Amazon.com, Inc. are presented in Appendix D. Finan- cial statements of Wal-Mart Stores,

Question:

The financial statements of Amazon.com, Inc. are presented in Appendix D. Finan- cial statements of Wal-Mart Stores, Inc. are presented in Appendix E.

Instructions

(a) Based on the information in these financial statements, compute the 2014 return on common stockholders' equity, debt to assets ratio, and return on assets for each company.

(b) What conclusions concerning the companies' profitability can be drawn from these ratios? Which company relies more on debt to boost its return to common shareholders?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...