Broadening Your Perspective 11-3 Amazon.com, Inc. is the world\'s largest online

Question

Broadening Your Perspective 11-3 Amazon.com, Inc. is the world's largest online retailer. It also produces consumer electronics-notably the Kindle e-book reader and the Kindle Fire Tablet computer-and is a major provider of cloud computing services. The following are Amazon's financial statements as presented in the company's 2013 annual report. To access Amazon's complete annual report, including notes to the financial statements, follow these steps: 1 Go to http://www.amazon.com 2. Select the Investor Relations link at the bottom of the page and then select the 2013 Annual Report under Annual Reports and Proxies. 3. The Notes to Consolidated Financial Statements begin on page 40 The following are Wal-Mart Stores, Inc.'s financial statements as presented in the company's 2014 annual report. To access Wal-Mart's complete annual report, including notes to the financial statements, follow these steps: 2. 3. 4. Select Annual Reports under the Investors tab Select the 2014 Annual Report (Wal-Mart's fiscal year ends January 31). The Notes to Consolidated Financial Statements begin on page 40 At December 31, 2013, what was Amazon's Largest current liability account? What were its total current liabilities? At January 31, 2014, what was Wal-Mart's largest current liability account? What were its total current liabilities? (Enter the amounts in millions.) Amazon Wal-Mart million million Largest current liability Total current liabilities Based on information in these financial statements, compute the following 2013 values for Amazon and 2014 values for Wal-Mart: (Enter the amounts in millions. Enter negative amounts using either a million million negative sign preceding the number e.g. -45 or parentheses e.g. (45), Round current ratio values to 2 decimal places, e.g. 52.75.) (in millions) Amazon Wal-Mart (1) Working capital (2) Current ratio

Explanation / Answer

AMAZON 31.12.2013

1. LARGEST CURRENT LIABILITY :ACCOUNTS PAYABLE =$15,133 MILLIONS

2.TOTAL CURRENT LIABILITIES:$ 22,980 MILLIONS

WALMART JAN 31, 2014

1. LARGEST CURRENT LIABILITY :ACCOUNTS PAYABLE=$37,415 MILLIONS

2. TOTAL CURRENT LIABILITIES: $69,345 MILLIONS

AMAZON

1. WORKING CAPITAL= CURRENT ASSET -CURRENT LIABILITIES=$24,625-$22,980=$1,645 MILLIONS

2. CURRENT RATIO= CURRENT ASSETS/ CURRENT LIABILITIES=$24,625/$22,980=1.07:1

WALMART

1. WORKING CAPITAL=$61,185-$69,345= (8160) MILLIONS

2. CURRENT RATIO= $61,185/$69,345=0.88:1

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