preview

Financial Analysis Of Amazon. Com

Better Essays

Financial Analysis of Amazon.com

Q1 - 9. Brief Description of the Company:

Founder and CEO Jeff Bezos opened the virtual doors of Amazon.com's online store in July 1995. The company was incorporated in 1994 in the state of Washington and reincorporated in 1996 in Delaware. The Company's principal corporate offices are located in Seattle, Washington. Amazon.com completed its initial public offering in May 1997, and its common stock is listed on the NASDAQ National Market under the ticker symbol AMZN. Amazon.com's fiscal year is based on the calendar year, and the last day of the fiscal year is December 31. The closing stock selling price for February 1, 2006 was $43.98. Amazon has never declared or paid cash dividends on its common …show more content…

Ernst and Young LLP, a Seattle based independent registered public accounting firm serves as the auditor for Amazon.com.

Descriptive Financial Information:

Q10.
(In millions except per share data)
Items: Year 2005 Year 2004
Net Sales Revenue $ 8,490 $ 6,921
Total Expenses
(Including taxes and cost of goods sold)
$ 8,149
$ 6,163
Net Income (Loss) $ 359 $ 588
Basic Earnings per share $ 0.87 $ 1.45
Comprehensive Income $ 333 $ 582
Reasons for differences between net income and comprehensive income: The reasons for differences between net income and comprehensive income as reported in the financial statements are the comprehensive income includes foreign currency translation adjustment (net of tax), decline of unrealized gains on available-for-sale securities (net of tax effect), and amortization of unrealized loss on terminated Euro Currency Swap (net of tax).

Q 11 – 13.
Items: Year 2005 (in millions)
Cash inflow (Outflow) from operating activities $ 733
Cash inflow (Outflow) from investing activities ($ 778)
Cash inflow (Outflow) from financing activities ($ 193) Q14. Did the company pay dividends during the year? If so, how much?

The company did not pay any dividends during the year 2005.

Q 15 – 16.
Items: Year 2005 (in millions)
Interest paid $ 105
Income taxes paid $ 12

Q17. What were the main

Get Access