What would a December classified balance sheet

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Question - Amazon Inc.'s balance sheet (slightly modified) for December 31, 2011, contained the following items ($ in millions):

Property and equipment, net $ 4,417

Accrued expenses and other 3,751

Cash and cash equivalents 5,269

Other noncurrent assets 1,416

Inventories 4,992

Other current assets 351

Accounts payable 11,145

Marketable securities, short-term 4,307

Accounts receivable, net ?

Goodwill 1,955

Long-term liabilities 2,625

Stockholders' equity 7,757

1. What would a December 31, 2011, classified balance sheet for Amazon look like?. Include the correct amount for Accounts Receivable.

2. How would I Compute the company's working capital, current ratio, and quick ratio. Compute the quick ratio as (current assets - inventory) ÷ current liabilities.

3. Comment on the company's current and quick ratios. In 2010, the current ratio was 1.33 and the quick ratio was 1.02.

4. During 2011, Amazon decreased its Marketable Securities by $678. Suppose the company had not decreased its Marketable Securities but had instead decreased long-term investments (classified as Other Noncurrent Assets) by $678. How would this have affected Amazon's current ratio? How would it have affected the company's liquidity?

Reference no: EM132603764

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