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

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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Amazon.com, Inc. Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Revenues: Product sales.... $ 160,408 $ 141,915 Service sales.. 120,114 90,972 Total revenues, $ 280,522 $ 232,887 Operating expenses: Cost of sales... $(165,536) $(139,156) Fulfillment....... (40,232) (34,027) Technology and content.. (35,931) (28,837) Marketing.. . (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