Analyze Amazon.com Amazon.com, Inc. (AMZN) is the largest Internet retailer in the United States. Amazon’s income statements for two recent years follow: Amazon.com, Inc. Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Revenues: Product sales $ 94,665 $ 79,268 Service sales 41,322 27,738 Total revenues $ 135,987 $ 107.006 Operating expenses: Cost of sales $ (88,265) 5 (71,651) Fulfillment (17,619) (13,410) Marketing (7,233) (5,254) Technology and content (16,085) (12,540) General and administrative (2,432) (1,747) Other operating expense (income), net (167) (171) Total operating expenses $(131.801) $(104,773) Operating income $ 4,186 $ 2,233 a. Prepare a horizontal analysis of the income statements. Round percentages to one decimal place. b. Interpret the results of the horizontal analysis.

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Corporate Financial Accounting

15th Edition
Carl Warren + 1 other
Publisher: Cengage Learning
ISBN: 9781337398169
BuyFind

Corporate Financial Accounting

15th Edition
Carl Warren + 1 other
Publisher: Cengage Learning
ISBN: 9781337398169

Solutions

Chapter
Section
Chapter 2, Problem 2.1MAD
Textbook Problem

Analyze Amazon.com

Amazon.com, Inc. (AMZN) is the largest Internet retailer in the United States. Amazon’s income statements for two recent years follow:

Amazon.com, Inc.

Income Statements For the Years Ended December 31

(in millions)

Year 2 Year 1
Revenues:    
Product sales $ 94,665 $ 79,268
Service sales 41,322 27,738
    Total revenues $ 135,987 $ 107.006
Operating expenses:    
    Cost of sales $ (88,265) 5 (71,651)
    Fulfillment (17,619) (13,410)
    Marketing (7,233) (5,254)
    Technology and content (16,085) (12,540)
    General and administrative (2,432) (1,747)
    Other operating expense (income), net (167) (171)
        Total operating expenses $(131.801) $(104,773)
Operating income $ 4,186 $ 2,233

a. Prepare a horizontal analysis of the income statements. Round percentages to one decimal place.

b.    Chapter 2, Problem 2.1MAD, Analyze Amazon.com Amazon.com, Inc. (AMZN) is the largest Internet retailer in the United States. Interpret the results of the horizontal analysis.

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Chapter 2 Solutions

Corporate Financial Accounting
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