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* Current Ratio = current assets / current liabilities (p.80 of text) * * (Page 40 of balance sheet From 2012 Form 10-K) * Current Assets 2011 = 17,490,000 2012 = 21,296,000 * Current Liabilities 2011 = 14,896,000 2012 = 19,002,000 * Current Ratio 2011 = 1.71 2012 = 1.12 * * Debt Ratio = total liabilities / total assets (p.85 of text) * * (Page 40 of balance sheet From 2012 Form 10-K) * Total Liabilities 2011 = 25,278,000 2012 = 32,555,000 * Total Assets 2011 = 25,278,000 2012 = 32,555,000 * Debt Ratio 2011 = 1 2012 = 1 * * Return on equity = Net Profit Margin x Total Asset Turnover x Equity Multiplier (p. 95 of text) * * REO 2011 13.12 x 1.90 x 0 = 0 * REO 2012 -0.64 x 1.88 x 0 = 0 * * Net Profit Margin = Net Income / Sales * * 2011 = 631,000,000 / 48,077,000 = 13.12 * 2012 = (39,000,000) / 61,093,000 = (0.64) -0.64 * * Total Asset Turnover = Sales / Total Assets * * 2011 = 48,077,000 / 25,278,000 = 1.90 * 2012 = 61,093,000 / 32,555,000 = 1.88 * * Equity Multiplier = 1 / 1-Debt Ratio * * 2011 = 1 / 1-1 = 0 * 2012 = 1 / 1-1 = 0 * * (Page 44 & 45 from 2012 Form 10-K) * Net Income 2011 = 631,000,000 2012 = (39,000,000) * Sales 2011 = 48,077,000 2012 = 61,093,000 * Total Assets: (above) 2011 = 25,278,000 2012 = 32,555,000 * Debt Ratio: (above) 2011 = 1 2012 = 1 * * Days receivable = Average collection period = AR / (Annual credit sales X 365) (p.81 of text) * * (Page 40 of balance sheet From 2012 Form 10-K) * Account receivable 2011 = 2,571,000 2012 = 3,634,000 * Annual Credit Sales 0 0 * * No annual credit sales were listed which leads me to believe Amazon does NO on credit sales. Therefore, I assume

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