1/ The following information ($ in millions) comes from a recentannual report of Amazon.com, Inc.:

Net sales	$	10,723
Totalassets		4,427
End of yearbalance in cash		1,218
Totalstockholders' equity		525
Gross profit(Sales – Cost of Sales)		2,649
Net increase incash for the year		10
Operatingexpenses		2,067
Net operatingcash flow		801
Other income(expense), net		(21)

Compute the incomebefore income tax for Amazon.

Multiple Choice

• $ 481

• $ 681

• $ 561

• $ 641

• 2/ The following information ($ in millions) comes from a recentannual report of Amazon.com, Inc.:

  Net sales	$	10,786
  Totalassets		4,494
  End of yearbalance in cash		1,130
  Totalstockholders' equity		420
  Gross profit(Sales – Cost of Sales)		2,519
  Net increase incash for the year		20
  Operatingexpenses		2,063
  Net operatingcash flow		603
  Other income(expense), net		(16)

  Compute Amazon's costof goods sold for the year.

  Multiple Choice

• $ 7,160

• $ 4,471

• $ 5,097

• $ 8,267

• 3/ Alpaca Corporation had revenues of $270,000 in its first yearof operations. The company has not collected on $19,600 of itssales and still owes $26,000 on $80,000 of merchandise itpurchased. The company had no inventory on hand at the end of theyear. The company paid $13,000 in salaries. Owners invested$29,000 in the business and $29,000 was borrowed on a five-yearnote. The company paid $3,100 in interest that was the amount owedfor the year, and paid $7,000 for a two-year insurance policy onthe first day of business. Alpaca has an effective income tax rateof 40%.

  
  Compute net income for the first year for Alpaca Corporation.

  Multiple Choice

• $ 113,140

• $ 102,240

• $ 170,400

• $ 190,000

• 4/ Land was acquired in 2018 for a future building site at acost of $40,700. The assessed valuation for tax purposes is$28,100, a qualified appraiser placed its value at $49,800, and arecent firm offer for the land was for a cash payment of $44,300.The land should be reported in the financial statements at:

  Multiple Choice

• $ 28,100.

• $ 40,700.

• $ 44,300.

• $ 49,800.

Answer rating: 100% (QA)

Question 1 Income before income tax 2649206721 561 2 Cost of goods sold 107862519 8267 3 Calc... View the full answer