Amazon.com, lnc.'s financial statements are presented in Appendix D. Financial statements of Walmart Inc. are presented in Appendix E. (Use Walmart's January 31, 2020, financial statements for comparative purposes.) The complete annual reports of Amazon and Walmart, including the notes to the financial statements, are available at each company's respective website.

Instructions
a. Based on the information contained in these financial statements, determine each of the following for each company. Use Amazon's net product sales and Walmart's net sales to compute gross profit information. (Assume that Walmart's "operating, selling, general and administrative expenses" are equivalent to Amazon's operating expenses net of cost of sales.)
1. Gross profit for 2019.
2. Gross profit rate for 2019.
3. Operating income for 2019.
4. Percentage change in operating income from 2018 to 2019.
b. What conclusions concerning the relative profitability of the two companies can you draw from these data?