Question: Amazon.com, Inc. (AMZN) is the largest Internet retailer in the United States. Amazons income statements through operating income for two recent years are as follows

Amazon.com, Inc. (AMZN) is the largest Internet retailer in the United States. Amazon’s income statements through operating income for two recent years are as follows (in millions):

Amazon.com, Inc. Income Statements For the Years Ended December 31 (in millions)

a. Prepare a vertical analysis of the two income statements. Round percentages to one decimal place.
b. Use the vertical analysis to explain the increase in operating income.

Amazon.com, Inc. Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Revenues: $ 160,408 120,114 $ 280,522 Product sales . $ 141,915 Service sales . 90,972 Total revenues. $ 232,887 Operating expenses: Cost of sales.. $(165,536) $ (139,156) Fulfillment.. (40,232) (34,027) Technology and content Marketing.. (35,931) (28,837) (18,878) (13,814) General and administrative. (5,203) (4,336) Other operating expense (Income), net. Total operating expenses Operating income (201) $ (265,981) $ 14,541 (296) $ (220,466) $ 12,421

Step by Step Solution

★★★★★

3.39 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Particulars Amount age Amount age Year 2 Year 1 Revenue Product sales 160408 57 141... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Corporate Financial Accounting 16th edition Questions!

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): A. Prepare a...

The condensed income statements through operating income for Apple Inc. and Best Buy Co. Inc. (BBY) are reproduced below for recent fiscal years (numbers in millions of dollars). Prepare comparative...

The condensed income statements through operating income for Amazon.com, Inc. (AMZN), Best Buy Co., Inc. (BBY), and Wal-Mart Stores, Inc. (WMT), for a recent fiscal year follow (in millions): 1....

need help with these 6 questions plz for accounting need help with these 3 questions American Leaf Company TrialBalancesOctober31,20Y2 Journalize the five entries that adjusted the accounts at...

need help plz for accounting 210, havent been able to get the help in a week from experts American Leaf Company TrialBalancesOctober31,20Y2 Journalize the five entries that adjusted the accounts at...

How do I do numbers 2,3, and 4 of the continuing problem? d. A eash receipt of 54,100 was posted as a debit to Cash of $1,400. c A debit of $12,350 to Accounts Receivable was not posted. d. A return...

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...

w.com/ilm/takeAssignment/take AssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress-false Update Apple ID Setti Some account services available until you sign G Google Image Res. eBook...

eBook Calcul 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...

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...

Two stable isotopes of lithium Li and Li have respective abundances of 7.5% and 92.5%. These isotopes have masses 6.01512 u and 7.01600 u, respectively. Find the atomic mass of lithium. Boron has two...

LLL company has identified a need to better prepare its employees for the future after being heavily impacted by an ill-prepared shift into Global Operations which led to a decrease in productivity,...

In the lecture, we learnt that binary search is an efficient algorithm for finding an item from a sorted list of items. Your task is to implement binary search. Specifically, you are required to: for...

8. Which of the following situations describes an equilibrium? Which does not? If the situation does not describe an equilibrium, what would an equilibrium look like? a. Many people regularly commute...

Why should the responsibility for maintaining the accounting records be separated from the responsibility for operations? Explain.

Before a voucher for the purchase of merchandise is approved for payment, supporting documents should be compared to verify the accuracy of the liability. Give an example of supporting documents for...

The balance of Cash is likely to differ from the bank statement balance. What two factors are likely to be responsible for the difference?

Usinh excel solver functiin to answer this question. 4. In the following assume that the CAPM holds and Coca-Cola and Netflix constitute the whole market. a. Calculate three Market Portfolios using...

Screenshots 2 and 5 include two respectively, as the graphs did not fit in one screenshot. In total, there are 10 screenshots that need solving. I DO NOT NEED ANY EXPLANATIONS! ONLY ANSWERS. As so,...

160 people are asked how many siblings they have? # of Siblings Frequency Relative Frequency Cumulative Frequency 0 27 0. 1688 25 0. 1563 52 2 38 0.2375 90 Proctor 0.2938 137 4 23 160 a. Complete the...