Question: Amazon.com, Inc. has shared the following information for its North America segment for the year ended December 31, 2023: Income Statement Sales revenue: $300,000,000 Cost
Amazon.com, Inc. has shared the following information for its North America segment for the year ended December 31, 2023:
Income Statement
- Sales revenue: $300,000,000
- Cost of goods sold: $210,000,000
- Gross margin: $90,000,000
- Operating expenses:
- Fulfillment expenses: $30,000,000
- Technology and content expenses: $20,000,000
- Marketing expenses: $10,000,000
- Operating income: $30,000,000
- Nonoperating items:
- Interest expense: $5,000,000
- Loss on disposal of assets: $2,000,000
- Net income: $23,000,000
Balance Sheet
- Assets:
- Cash: $15,000,000
- Accounts receivable: $10,000,000
- Inventory: $25,000,000
- Property and equipment: $50,000,000
- Total assets: $100,000,000
- Liabilities:
- Accounts payable: $8,000,000
- Short-term loans: $12,000,000
- Long-term debt: $30,000,000
- Stockholders' equity: $50,000,000
- Total liabilities and stockholders' equity: $100,000,000
Requirements:
- Calculate the gross profit margin.
- Determine the operating profit margin.
- Compute the return on assets (ROA).
- Calculate the debt ratio.
- Find the interest coverage ratio.
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