accounting I week5.ch.8.

Accounting I - 2b Amazon.com expects to collect $558 million from its customers after 2c Amazon.com expected not to collect $147 million at 3

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Accounting I Week 5, Chapter 8 – Case 1. Accounts receivable to appear to be an important asset for Amazon.com. Amazon.com is an on-line merchant and does keep a large inventory on hand. It is important for Amazon to control the accounts receivable to ensure enough cash is available to maintain inventory levels and keep the business growing. 2a. At December 31, 2007 customers owe Amazon.com $6,802.
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Unformatted text preview: 2b. Amazon.com expects to collect $558 million from its customers after December 31, 2007. 2c. Amazon.com expected not to collect $147 million at December 31, 2007. 3. Amazon’s acid-test ratio at the end of 2007 is $2,539 + 1200 + 705 = $4,444 / 3,714 = 1.197 If all the current liabilities came due immediately, Amazon would not be able to pay them....
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This note was uploaded on 07/18/2011 for the course ACCT 101 taught by Professor Thompson during the Spring '11 term at Broome Community College.

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