Analyze Amazon.com Amazon.com, Inc. (AMZN) is the largest Internet retailer in the United States. Amazon's operating income taken from its income statements for two recent years is as follows: Amazon.com. Inc. 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 with marketing showing the highest percent and cost of sales, the lowest percent The net result is a(n) in operating income between the two years. a. Prepare a horizontal analysis of the operating income for the preceding two years. Round percentages to one decimal place. Amazon.com, Inc. Operating Income For the Years Ended December 31 (in millions) \begin{tabular}{|c|c|c|c|c|} \hline Revenues: & Year 2 & Year 1 & \begin{tabular}{c} Increase/(Decrease) \\ Amount \end{tabular} & \begin{tabular}{c} Increase/(Decrease) \\ Percent \end{tabular} \\ \hline Product sales & $241,787 & $215,915 & 25,872 & 12% \\ \hline Service sales & 228,035 & 170,149 & 57,886 & 34% \\ \hline Total revenues & $469,822 & $386,064 & 83,758 & 21.7% \\ \hline Operating expenses: & & & & \\ \hline Cost of sales & $(272,344) & $(233,307) & 39,037 & 16.7% \\ \hline Fulfillment & (75,111) & (58,517) & 16,594 & 28.4% \\ \hline Technology and content & (56,052) & (42,740) & 13,312 & 31.1% \\ \hline Marketing & (32,551) & (22,008) & 10,543 & 47.9% \\ \hline General, administrative, and other & (8,885) & (6,593) & 2,292 & 34.8% \\ \hline Total operating expenses & $(444,943) & $(363,165) & 81,778 & 22.5% \\ \hline Operating income & $24,879 & $22,899 & 1,990 & 8.6% \\ \hline \end{tabular}