Question: Amazon.com, Inc. Data for the year ended December 31, 2023: Item Amount Total Revenue $400,000,000 Cost of Goods Sold $250,000,000 Selling, General, and Administrative

Amazon.com, Inc.
 Data for the year ended December 31, 2023:

Item

Amount

Total Revenue

$400,000,000

Cost of Goods Sold

$250,000,000

Selling, General, and Administrative Expenses

$100,000,000

Income Tax Expense

$30,000,000

Net Income

$20,000,000

  1. Calculate Amazon's operating profit margin.
  2. Determine Amazon's effective tax rate.
  3. Discuss the impact of cost of goods sold on Amazon's gross profit.
  4. Explain how Amazon recognizes revenue from sales.
  5. Evaluate Amazon's profitability using the return on equity (ROE) ratio.

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