Financial Statement Case[1]

Financial Statement Case[1] - Amazon uses the report form....

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Financial Statement Case ACC205: Principles of Accounting I (BAG1109A) Jess Stern March 08, 2011
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Financial Statement Case This case, based on the balance sheet of Amazon.com in Appendix A at the end of the book, will familiarize you with some of the assets and liabilities of that company. Use the Amazon balance sheet to answer the following questions. Requirements: 1. Which balance sheet format does Amazon.com use? 2. Name the company’s largest current asset and largest current liability at December 31, 2005. 3. Compute Amazon’s current ratios at December 31, 2005 and 2004. Did the current ratio improve, worsen, or hold steady during 2005? 4. Under what category does Amazon report furniture, fixtures, and equipment? 5. What was the cost of the company’s fixed assets at December 31, 2005? What was the amount of accumulated depreciation? What was the book value of the fixed assets? See Note 3 for the data. Answers: 1. There are two formats of a balance sheet that are described in chapter 4. One is the accounting form and the other is the report form.
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Amazon uses the report form. 2. The companys largest current asset is Cash & Cash Equivalents with the amount of $1,013,000,000.00. The largest current liability is Accounts Payable with the amount of $1,366,000,000.00. 3. Current ratios are determined with the equation current ratio equals total current assets divided by total current liabilities. Amazon has a current ratio of 1.567283951 in 2004 and a current ratio of 1.518403318 in 2005. Amazons current ratio had worsened from 2004 to 2005. 4. Amazon uses the category Fixed asset, net to report furniture, fixtures, and equipment. 5. The cost of Amazons fixed assets at December 31, 2005 was $571,000,000.00. The amount of accumulated depreciation at December 31, 2005 was $223,000,000.00. After subtracting the amount of accumulated depreciation for fixed assets from the cost of fixed assets, we end up with a book value of fixed assets at $348,000,000.00....
View Full Document

Page1 / 3

Financial Statement Case[1] - Amazon uses the report form....

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online