Vertical analysis Amazon.com, Inc. is the largest Internet retailer in the United States. Amazon’s income statements through income from operations for two recent years are as follows (in millions): Amazon.com, Inc. Operating Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Product sales $70,080 $60,903 Service sales 18,908 13,549 Total sales $88,988 $74,452 Cost of sales $62,752 $54,181 Fulfillment 10,766 8,585 Marketing 4,332 3,133 Technology and content 9,275 6,565 General and administrative 1,552 1,129 Other operating expense (income), net 133 114 Total operating expenses $88,810 $73,707 Income from operations $178 $745 Required: a. Prepare a vertical analysis of the two operating income statements. Round percentages to one decimal place. Amazon.com, Inc. Operating Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Amount Percent Amount Percent Product sales Service sales Total sales Cost of sales Fulfillment Marketing Technology and content General and administrative Other operating expense (income), net Total operating expenses Income from operations
Vertical analysis Amazon.com, Inc. is the largest Internet retailer in the United States. Amazon’s income statements through income from operations for two recent years are as follows (in millions): Amazon.com, Inc. Operating Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Product sales $70,080 $60,903 Service sales 18,908 13,549 Total sales $88,988 $74,452 Cost of sales $62,752 $54,181 Fulfillment 10,766 8,585 Marketing 4,332 3,133 Technology and content 9,275 6,565 General and administrative 1,552 1,129 Other operating expense (income), net 133 114 Total operating expenses $88,810 $73,707 Income from operations $178 $745 Required: a. Prepare a vertical analysis of the two operating income statements. Round percentages to one decimal place. Amazon.com, Inc. Operating Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Amount Percent Amount Percent Product sales Service sales Total sales Cost of sales Fulfillment Marketing Technology and content General and administrative Other operating expense (income), net Total operating expenses Income from operations
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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Vertical analysis
Amazon.com, Inc. is the largest Internet retailer in the United States. Amazon’s income statements through income from operations for two recent years are as follows (in millions):
Amazon.com, Inc. | ||
Operating Income Statements | ||
For the Years Ended December 31 | ||
(in millions) | ||
Year 2 | Year 1 | |
Product sales | $70,080 | $60,903 |
Service sales | 18,908 | 13,549 |
Total sales | $88,988 | $74,452 |
Cost of sales | $62,752 | $54,181 |
Fulfillment | 10,766 | 8,585 |
Marketing | 4,332 | 3,133 |
Technology and content | 9,275 | 6,565 |
General and administrative | 1,552 | 1,129 |
Other operating expense (income), net | 133 | 114 |
Total operating expenses | $88,810 | $73,707 |
Income from operations | $178 | $745 |
Required:
a. Prepare a vertical analysis of the two operating income statements. Round percentages to one decimal place.
Amazon.com, Inc. | ||||
Operating Income Statements | ||||
For the Years Ended December 31 (in millions) | ||||
Year 2 | Year 1 | |||
Amount | Percent | Amount | Percent | |
Product sales | ||||
Service sales | ||||
Total sales | ||||
Cost of sales | ||||
Fulfillment | ||||
Marketing | ||||
Technology and content | ||||
General and administrative | ||||
Other operating expense (income), net | ||||
Total operating expenses | ||||
Income from operations |
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