Amazon.com, Inc. is the largest Internet retailer in the United States. Amazon's income state-ments through income from operations for two recent years are as follows (in millions):Amazon.com, Inc.Operating Income StatementsFor the Years Ended December 31(in millions)Year 2Year 1Product sales..$60,903$70,080Service sales..13,549$74,45218,908$88,988Total sales.Cost of sales..$62,752$54,181Fulfillment..10,7668,585Marketing ..Technology and content..General and administrative..Other operating expense (income), net .Total operating expenses.Income from operations..4,3323,1336,5659,2751,5521,129133114$88,810$ 178$73,707$ 745Prepare a vertical analysis of the two operating income statements. Roundpercentages to one decimal place.b.a.Use the vertical analysis to explain the decrease in income from operations.

Vertical analysis:Vertical analysis is the method of financial statement analysis, and it is useful…

Answered: Amazon.com, Inc. is the largest…

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter3: The Adjusting Process

Section: Chapter Questions

Problem 3.1ADM

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Ralph Lauren Corporation designs, markets, and distributes a variety of apparel, home decor, accessory, and fragrance products. The companys products include such brands as Polo by Ralph Lauren, Ralph Lauren Purple Label, Ralph Lauren, Polo Jeans Co., and Chaps. Polo Ralph Lauren reported the following (in thousands) for two recent years: Assume that accounts receivable (in millions) were 607,000 at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round to two decimal places. b. Compute the days sales in receivables for Year 2 and Year 1. Use 365 days and round to one decimal place. c. What conclusions can be drawn from these analyses regarding Ralph Laurens efficiency in collecting receivables?
Apple Inc. designs, manufactures, and markets personal computers and related personal computing and communicating solutions for sale primarily to education, creative, consumer, and business customers. Substantially all of the companys sales over the last five years are from sales of its Macs, iPods, iPads, and related software and peripherals. For two recent fiscal years, Apple reported the following (in millions): Assume that the accounts receivable (in millions) were 24,094 at the beginning of fiscal Year 1. 1. Compute the accounts receivable turnover for Year 2 and Year 1. Round to two decimal places. 2. Compute the days sales in receivables at the end of Year 2 and Year 1. Use 365 days and round to one decimal place. 3. What conclusions can be drawn from (1) and (2) regarding Apples efficiency in collecting receivables?
Analyze and compare Amazon.com, Best Buy, and Walmart The condensed income statements through operating income for Amazon.com, Inc. (AMZN), Best Buy Co., Inc. (BBY), and Walmart Inc. (WMT) for a recent fiscal year follow (in millions): Line Item Description Amazon Best Buy Walmart Sales $280,522 $43,638 $523,964 Cost of sales (165,536) (33,590) (394,605) Gross profit $114,986 $10,048 $129,359 Selling, general, and administrative expenses (100,244) (7,998) (108,791) Operating expenses (201) (41) 0 Operating income $14,541 $2,009 $20,568 Question Content Area 1. Prepare comparative common-sized income statements for each company. Round percentages to one decimal place. If percentages is zero, enter "0". For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300) Comparative Income statements Line Item Description Amazon Best Buy Walmart Sales Sales% Sales% Sales% Cost of sales Cost of sales% Cost of…
The condensed income statements through income from operations for Amazon.com, Inc., Best Buy, Inc., and Walmart Stores, Inc. for a recent fiscal year follow (in million): ............................................................. Amazon Best Buy Walmart Sales………………………………............…..…. $88,988 ........ $40,339 ...... $485,651 Cost of Goods Sold…………….....…….. 62,752 ......... 31,292 ........ 365,086 Gross Profit ……………………….…...... $26,236 ......... $ 9.047 .... $120,565 Selling, General & Administrative Expenses…... 26,058 ...... 7,592 ....93,418 Other Operating Expenses………..........……….. 0 ....... 5 ......... 0 Income From Operations……………...........…… $ 178 ........ $ 1,450 ........ $ 27,147 Required: Prepare comparative common-sized income statements for each company. (Round percentages to one decimal place.) Use the common-sized analysis to compare and interpret the financial performance of the…
East Point Retail, Inc., sells apparel through company-owned retail stores. Financial information for East Point follows (in thousands): Line Item Description Fiscal Year 3 Fiscal Year 2 Net income $143,300 $73,800 Interest expense 2,900 11,000 Line Item Description Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total assets (at end of fiscal year) $3,058,265 $2,909,081 $2,561,887 Total stockholders' equity (at end of fiscal year) 1,104,832 1,082,954 785,400 Assume the apparel industry average return on total assets is 8.0%, and the average return on stockholders’ equity is 15.0% for the year ended April 2, Year 3. a. Determine the return on total assets for East Point for fiscal Years 2 and 3. Round your answers to one decimal place. Line Item Description Percentage Fiscal Year 3 fill in the blank 1 % Fiscal Year 2 fill in the blank 2 % b. Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round your answers to…
Income statement information for adidas AG, a German footwear, apparel, and accessories manufacturer, for the recent year ended December 31, follows (in millions). Prepare its calendar-year (1) multiple-step income statement and (2) single-step income statement. Net income . €1,020 05-P4 Financial income . 28 Financial expenses 74 Operating profit 1,491 Cost of sales . 9,912 Income taxes 425 Income before taxes . € 1,445 Gross profit . 9,379 Royalty and commission income . 109 Other operating income . 266 Other operating expenses . 8,263 Net sales . 19,291
Comparing Two Companies in the Same Industry: Under Armour and Columbia Sportswear The following information is available from the financial statements included in Form 10-K for fiscal years 2014 and 2013 for Under Armour, Inc. and Columbia Sportswear Company (in thousands of dollars): Under Armour, Inc. Columbia Sportswear Company Net revenues (Net sales for Under Armour, Inc. & Columbia Sportswear) for the year ended December 31, 2014 $3,084,370 $2,100,590 Accounts receivable, net: December 31, 2014 279,835 344,390 December 31, 2013 209,952 306,878 Required: 1. Calculate the accounts receivable turnover ratios for both companies for the most recent year. Assume all sales are on credit. Round your answers to 2 decimal places. Under Armour fill in the blank 1 times Columbia Sportswear fill in the blank 2 times 2. Calculate the average length of time it takes each company to collect its accounts receivable. Use 360 days and round intermediate…
Pandora Corporation operates several factories in the Midwest that manufacture consumer electronics. The December 31, 2021, year-end trial balance contained the following income statement items: Account Title Debits CreditsSales revenue $ 12,500,000Interest revenue 50,000Loss on sale of investments $ 100,000Cost of goods sold 6,200,000Selling expense 620,000General and administrative expense 1,520,000Interest expense 40,000Research and development expense 1,200,000Income tax expense 900,000 Required:Calculate…
The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 2,222, 000 Cost of goods sold 1,088, 780 Gross profit 1, 133, 220 Operating expenses Salaries expense S 304, 414 Depreciation experise 53, 328 Rent expense 59, 994 Amortization expenses-Patents 6,666 Utilities expense 24, 442 448, 844 684,376 Gain on sale of equipment 8, 888 Net income $ 693, 264 Accounts receivable $ 22, 650 increase Accounts payable $ 9,650 decrease Inventory 19, 475 increase Salaries payable 5, 500 decrease Prepare the operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.).
uarez Department Store has derived the following data from the store’s operations in the year ended December 31, 2019. Net Sales $10,000Net Income ? Current Liabilities 2,000Selling Expenses 1,000Long term liabilities 1,600Total Assets 6,800Stockholders’ equity ?Gross Profit ?Cost of Goods Sold 7,000Current Assets 4,000Income tax expense and other non-operating items 220Operating income ?General and administrative expenses 980Plant and equipment 2,600Other assets ?Using the given data, prepare for Juarez Department store a: Classified balance sheet at December 31, 2019. Classified income statement for the year ended December 31, 2019. Show supporting computations used in determining the missing amounts. How does Income tax expense differs from normal operating expenses such as advertising and salaries? How do you present income tax expense in a classified income statement?  An income statement is a summary of revenues and expenses and gains and losses, ending with net income for a…
Financial Statement Notes: Quarterly DataQuarterly data are presented below for Company A and Company B. One of these companies is Gibson Greetings, Inc., which manufactures and sells greeting cards. The other company is Hon Industries, Inc., which manufactures and sells office furniture. Both companies are on a calendar year basis. (Amounts in Thousands) FirstQuarter SecondQuarter ThirdQuarter FourthQuarter Year Company A Net sales $186,111 $177,537 $203,070 $213,608 $780,326 Gross profit 55,457 53,643 64,024 69,374 242,498 Company B Net sales $84,896 $83,796 $142,137 $235,336 $546,165 Gross profit 53,900 52,983 66,018 104,961 277,862 Requireda. Compute the percent of annual net sales generated each quarter by Company A. Round to the nearest percent.b. Compute the percent of annual net sales generated each quarter by Company B. Round to the nearest percent. FirstQuarter SecondQuarter ThirdQuarter FourthQuarter a. Company A…
Financial Statement Notes: Quarterly DataQuarterly data are presented below for Company A and Company B. One of these companies is Gibson Greetings, Inc., which manufactures and sells greeting cards. The other company is Hon Industries, Inc., which manufactures and sells office furniture. Both companies are on a calendar year basis. (Amounts in Thousands) FirstQuarter SecondQuarter ThirdQuarter FourthQuarter Year Company A Net sales $186,111 $177,537 $203,070 $213,608 $780,326 Gross profit 55,457 53,643 64,024 69,374 242,498 Company B Net sales $84,896 $83,796 $142,137 $235,336 $546,165 Gross profit 53,900 52,983 66,018 104,961 277,862 Requireda. Compute the percent of annual net sales generated each quarter by Company A. Round to the nearest percent.b. Compute the percent of annual net sales generated each quarter by Company B. Round to the nearest percent. FirstQuarter SecondQuarter ThirdQuarter FourthQuarter a. Company A…

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