Question

Amazon.com, Inc. is one of the largest Internet retailers in the world. Walmart Stores, Inc. is the REAL WORLD largest retailer in the United States. Amazon and Walmart compete in similar markets; however, Walmart sells through both traditional retail stores and the Internet, while Amazon sells only through the Internet. Interest expense and income before income tax expense from the financial statements of both companies for two recent years follow (in millions): Amazon Walmart Year 2 Year 1 Year 2 Year 1 $ 2,461 24,799 $141 $ 2,335 Interest expense Income (loss) before income tax expense 210 (111) 274 24,656 1. Compute the times interest earned ratio for both companies for the two years. (Round to one decimal place.) 2. -Interpret Amazon's interest coverage from Year 1 to Year 2 3. Does a times interest earned ratio less than 1.0 mean that creditors will not get paid interest? 4. -Interpret Walmart's interest coverage from Year 1 to Year 2 5. Which company appears to have the greater protection for creditors?

please answer

Answer 1

1 Interest earnded ratio Sno Particulars Amazon Walmart Year2 Year1 Year2 Year1 1 Interest Expense 210 141 2461 2335 2 Income(loss) before income tax expense -111 274 24799 24656 3 Interest earnded ratio(2/1) -0.5 1.9 10.1 10.6 Year 1 has a higher times interest earned ratio than Year 2. Thus, relatively amazon in year 1 is in better financial position than year 2 and the lenders will not to give additional debt. However, the times to interest ratio is greater than 1 which indicates that it generates sufficient earnings to cover more interest payments.

Companies with times interest ratio of less than 1 are unable to service their debt. They cannot meet their interest requirements from their earnings and must dig into their reserves to pay their obligations. Conclusion : Creditors will not paid Interest Year 1 has a higher times interest earned ratio than Year 2. Thus, relatively Walmart in year 1 is in better financial position than year 2 and the lenders will not to give additional debt. Walmart has higher times interest ratio than amazon.Thus Walmart is in better financial position than Amazon

Answer 2

god is dead

Answer 3

You couldve at least turned the photo the right way