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

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Amazon.com, Inc.’s financial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Instructions for accessing and using the complete annual reports of Amazon and Wal-Mart, including the notes to the financial statements, are also provided in Appendices D and E, respectively.

Instructions
(a) Based on the information contained in these financial statements, determine each of the following for each company.
(1) The percentage increase (decrease) in (i) net sales and (ii) net income from 2010 to 2011.
(2) The percentage increase in (i) total assets and (ii) total common stockholders’ (shareholders’) equity from 2010 to 2011.
(3) The basic earnings per share and price-earnings ratio for 2011. (For both Amazon and Wal-Mart, use the basic earnings per share.) Amazon’s common stock had a market price of $214.75 at the end of fiscal-year 2011, and Wal-Mart’s common stock had a market price of $57.90.
(b) What conclusions concerning 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...
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Accounting Principles

ISBN: 9781118566671

11th Edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

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