The financial statements of Amazon.com, Inc. are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc.

Question:

The financial statements of Amazon.com, Inc. are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E.

Instructions

(a) Based on the information contained in these financial statements, determine the following values for each company.

(1) Profit margin for 2014. (For Amazon, use "Total net sales.")

(2) Gross profit for 2014.

(3) Gross profit rate for 2014.

(4) Operating income for 2014.

(5) Percentage change in operating income from 2014 to 2013.

(b) What conclusions concerning the relative profitability of the two companies can be drawn from these data?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Financial Accounting Tools for Business Decision Making

ISBN: 978-1118953907

8th edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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