Question: 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

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 be 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 2012 to 2013.

(2) The percentage increase in (i) total assets and (ii) total common stockholders’ (shareholders’) equity from 2012 to 2013.

(3) The basic earnings per share and price-earnings ratio for 2013. (For both Amazon and Wal-Mart, use the basic earnings per share.) Amazon’s common stock had a market price of $398.79 at the end of fiscal-year 2013, and Wal-Mart’s common stock had a market price of $74.68.

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

Step by Step Solution

★★★★★

3.50 Rating (183 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a 1 Amazon i Net Sales 285 increase ii Net Income 221 increase WalM... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Principles IFRS Questions!

Mackenzie Plc engages in the manufacturing of small household appliances. The following are extracts from the accounting records of Mackenzie Ple at 31 December 2021 and 2020. Mackenzie Ple...

The financial statements for Williams-Sonoma, Inc., are presented in Appendix D at the end of the text. The following additional information (in thousands) is available: Accounts receivable at...

The following figure shows the marginal cost curve, average total cost curve, average variable cost curve, and marginal revenue curve for a firm for different levels of output in a perfectly...

Amazon.com, Inc.s financial statements are presented in Appendix D. Financial statements for Wal-Mart Stores, Inc. are presented in Appendix E. Instructions for accessing and using the complete...

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...

Amazon.com, Inc.s financial statements are presented in Appendix D. Financial statements for Wal-Mart Stores, Inc. are presented in Appendix E. Instructions for accessing and using the complete...

What is the purpose of the imaginary tour of the business?

Suppose your investment budget is $300,000 and you can borrow an additional $120,000 at risk-free interest rates. You're trying to invest all $420,000 in risk portfolio P. (a) Calculate the ratio (y)...

If you receive tax - sheltered income, it means that Question 9 options: you will never have to pay taxes on the income. the income has already been taxed. the taxes on the income will be deferred...

In 2016, Elaine paid $2,800 of tuition and $600 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband. What is the...

What is the difference between a favorable cost variance and an unfavorable cost variance?

me with the question below. I have asked this on here before but the solutions didnt explain how we got to the answer. Can you help with solving this by using ANOVA formulas? Thank you!! ANOVA...

A high school offers math placement exams for incoming freshmen to place students into the appropriate math class during their freshman year. Three different middle schools were sampled and the...

Flatte Restaurant is considering the purchase of a $10,600 souffl maker. The souffl maker has an economic life of five years and will be fully depreciated by the straight-line method. The machine...