BUS 400 Module Six Assignment Template

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Jan 9, 2024

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Jasmine Bowser BUS 400 Module 6 12/03/2023 BUS 400 Module Six Assignment Template 24-Month Pro Forma Insert the appropriate values in each row. Previous Fiscal Year (USD in Millions) 24-Month Projections Sales $513,983 $608,555 Cost of goods sold $288,831 $341,975 Gross profit $225,152 $266,579 Selling expenses $138,428 $163,898 Administrative expenses $11,891 $14,078 Total operating expense $501,735 $594,054 Income from operations $12,248 $14,501 Other income - - Income before tax and interest $ -5,936 $-4,843 Other expense (interest) $2,367 $2,802 Income before income tax $-5936 $-4,843 Income tax expense $-3,217 $-2,625 Net income $-2,722 $-2,221 Explanation of Assumptions Using the data based on past historical financial records, Amazon.com recorded an average increase of 9.4% in sales between 2021 2022 without considering the effects of Amazon Fitness. The increase in Amazon’s sales may amount to about $6 08,555 million, going by this trend. This remarkable success is primarily due to the company’s efforts to diversify its revenue-earning avenues. This could include the fitness sector which may help maintain their success even further. The fact that the company already sells fitness related products gives them an opportunity to diversify by using the current resources available. Introducing Amazon Fitness as a new service on Amazon.com is not a risk considering the projected increases in revenue for the company. Despite the large expenses involved in implementing Amazon Fitness, it is expected that the income would outweigh them. Amazon fitness is based on accessible health and wellness solutions which aim at offering excellent customer services and convenience. In a nutshell, Amazon’s official announcement forecasts that “ net sales are expected to be between $138.0 billion and $143.0 billion, or to grow between 9% and 13% compared with third quarter 2022 ” (Amazon New Release Details, 2023 . Since sales increased by 9.4% from 2021 to 2022, this implies that an annual growth rate of 9.4% for the last two years will see sales figures hit $562,297 million in 2023 and $608,555 million in 2024.
Jasmine Bowser BUS 400 Module 6 12/03/2023 References Amazon Cost of goods sold 2010-2023: AMZN . Macrotrends. (n.d.). https://www.macrotrends.net/stocks/charts/AMZN/amazon/cost-goods-sold Amazon.com announces second quarter results . Amazon.com, Inc. - Amazon.com Announces Second Quarter Results. (2023, August 3). https://ir.aboutamazon.com/news-release/news- release-details/2023/Amazon.com-Announces-Second-Quarter- Results/default.aspx#:~:text=Net%20sales%20are%20expected%20to,compared%20with %20third%20quarter%202022. Amazon.com Inc . MarketLine Intelligence Center. (2023, December 1). https://advantage.marketline.com/ AMAZON.COM, INC. sec.gov. (n.d.). https://www.sec.gov/Archives/edgar/data/1018724/000101872423000004/amzn- 20221231.htm Raghunath, A. (2023, November 23). Can amazon stock (NASDAQ:AMZN) reach record highs in 2024? . Nasdaq. https://www.nasdaq.com/articles/can-amazon-stock-nasdaq:amzn-reach- record-highs-in-2024
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