The Following Information Has Been Adapted from the 2004 and 2005

question 123

Essay

The following information has been adapted from the 2004 and 2005 annual reports of Amazon.com's worldwide operations, available online at
http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsAnnual




-Divide the class into teams of three or four people.Each team member should work the following problem separately outside of class.Then give the students time in class to compare answers with their teammates and put together a final,correct copy of the problem.Each team should turn in only one copy of the problem for grading.All team members will receive the same grade.
Use the adapted financial statements from Amazon.com,Inc.to answer the following questions:
13.Use the liquidity ratios you have just calculated to discuss Amazon.com's liquidity.

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Definitions:

Full Replacement Value

An insurance term referring to the amount necessary to replace damaged or lost property with new items of like kind and quality without deducting for depreciation.

Moral Hazard

A situation where one party in a transaction has the opportunity to take risks because they know they will not have to bear all the consequences.

Best Interest

A consideration that prioritizes the well-being or advantage of a person or group.

Acceptable Business Behavior

Practices within a business that are considered ethical and proper by societal and professional standards.