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Compute the working capital for each company

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Question - Amazon, Inc. is the largest Internet retailer in the United States. Best Buy, Inc. is a leading retailer of technology and media products in the United States. Amazon and Best Buy compete in similar markets; however, Best Buy sells through both traditional retail stores and the Internet, while Amazon sells only through the Internet. The current assets and current liabilities from recent balance sheets for both companies are provided as follows (in millions):

 

Amazon

Best Buy

Current assets

$31,327

$10,485

Current liabilities

28,089

7,436

A. Compute the working capital for each company.

B. Which company has the largest working capital?

C. Compute the current ratio for both companies.

D. Which company has the larger relative liquidity based on the current ratio?

Reference no: EM133066051

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