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. The profit margin for the most recent year provided. (For Amazon, use “Total net sales.”)
2. Gross profit for the most recent year provided.
3. Gross profit rate for the most recent year provided.
4. Operating income for the most recent year provided.
5. Percentage change in operating income between the most recent year provided and the prior year.
b. What conclusions concerning the relative profitability of the two companies can be drawn from these data?
Financial StatementsFinancial 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...
Step by Step Answer:
a b While the profit margin for the two companies is relatively the same WalMarts ...View the full answer
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119493631
9th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
