Analyze Amazon.com Amazon.com, Inc. (AMZN) is the largest Internet retailer in the United States. Amazon's income statements for two recent years follow: Amazon.com, Inc. Income Statements For the Years Ended December 31 (in millions) Revenues: Product sales Service sales Total revenues Operating expenses: Year 2 Year 1 $94,665 41,322 $79,268 27,738 $135,987 $107,006 Cost of sales Fulfillment Marketing Technology and content General and administrative Other operating expense (income), net Total operating expenses Operating income Required: $(88,265) $(71,651) (17,619) (13,410) (7,233) (5,254) (16,085) (12,540) (2.432) (1,747) (171) (167) $(131,801) $(104,773) $4,186 $2.233 a Drenare a horisontal analysis of the income statements Round necrentanas to one danima.tar Check My Work Previous Next> eBook Revenues: Product sales Service sales Total revenues Operating expenses: Year 2 Year 1 Amount Percent $94,665 $79,268 41,322 27,738 $135,987 $107,006 % % % Cost of sales $(88,265) $(71,651) % Fulfillment (17,619) (13,410)) %% Marketing (7,233) (5,254) % Technology and content (16,085) (12,540) % General and administrative (2,432) (1,747) Other operating expense (income), net (167) (171) Total operating expenses $(131.801) $(104,773) Operating income $4,186 $2.233 % % b. The horizontal analysis shows that total revenues between the two years, with a strong in service sales. Service sales are revenues earned from Amazon's Web hosting, Web design, and order fulfillment services provided for other businesses. This part of Amazon apparently Total operating expenses have grown between the two years, Indicating that expenses are growing than revenues. The expense growth appears to be occurring across all the major expense categories. The net result is a significant in operating income between the two years. Thus, Amazon demonstrates significant Check My Work Previous Next >