Expand Your Critical Thinking 11-3 (Part Level Submission) The financial stateme

Question

Expand Your Critical Thinking 11-3 (Part Level Submission) The financial statements of Amazon.com, Inc. are presented in Appendix D. Click here to view Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. ASSIGNMENT RESOURCES Post-Class Chpt 11A Problem 11-2A (Part Level Submission Problem 11-8A (Part Level Submission) Expand your Critical Thinking 11-3 (Part Level Submission) Click here to view Appendix E. Answer the following questions for each company. (a) Based on the information in these financial statements, compute the 2014 return on common stockholders' equity, debt to assets ratio, and return on assets for each company. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answers to 1 decimal place, e.g. 15.2%.) Review Score Review Results by Study Objective Amazon.com Wal-Mart Stores Return on common stockholders' equity Debt to assets Return on assets LINK TO TEXT Attempts: 0 of 2 used SAVE FOR LATER SUBMIT ANSWER

Explanation / Answer

1). Return on Equity : Net Income/ Common stockholders equity
Amazon = -241 / 10741 = -2.24%
Walmart = 16022/76255 = 21.01%

2). Debt to Assets Ratio = Long term debt / Total assets
Amazon = (8265+7410) / 54505 = 0.2875 or 28.75%
Walmart = (41771+2788) / 204751 = 0.2176 or 21.76%
(Debt to total assets ratio can also be Total Liabilities / Total Assets.Here it is debt to Assets so I taken it as long term debt)

3). Return on assets = Net Income / Total Assets
Amazon = -241 / 54505 = -0.44%
Walmart = 16022 / 203706 = 7.86%

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