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 three companies.
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 three companies.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 1MAD
Related questions
Question
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 three companies.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning