Analyze and compare Amazon.com, Best Buy, and Wal-Mart The condensed income statements through operating income for...

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Analyze and compare Amazon.com, Best Buy, and Wal-Mart The condensed income statements through operating income for Amazon.com, Inc. (AMZN), Best Buy Co., Inc. (BBY), and Wal-Mart Stores, Inc. (WMT), for a recent fiscal year follow (in millions): Amazon $135,987 (88,265) $ 47,722 (43,369) Best Buy Wal-Mart $ 39,403 (29,963) $ 9,440 (7,547) (39) (167) $4,186 $1,854 $ 22,764 1. Prepare comparative common-sized income statements for each company. Round percentages to one decimal place. If percentages is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers Sales Cost of sales Gross profit Selling, general, and administrative expenses Operating expenses Operating income Sales Cost of sales Feedback Print Item Gross profit Selling, general, and administrative expenses Operating expenses Operating income Feedback Comparative Income statements Feedback Amazon 100 ✓ % 64.9 X % Check My Work Partially correct 35.1 ✓% 31.9 X % 0.1 X % 3.1 ✓% Best Buy 100 ✓ % 76.0 X % 24 ✓ % 19,2 X % 0.1 X % Check My Work Divide each element by sales to determine the vertical analysis percentage. 4.7 ✓ % $ 485,873 (361,256) $ 124,617 (101,853) Wal-Mart 100 ✓ % 74.4 X % 25.7 X % 20.9 X % 0 ✓ % 4.7 2. Use the common-sized analysis to compare the financial performance of the three companies. Amazon ✓has the highest gross profit on a percentage basis, but has the lowest operating income on a percentage basis. This is because of the relatively large percentage of sales that is used for selling, general, and administr ✔has relatively strong gross pro generates a very strong operating income. This is consistent with the company's business strategy, in that it seeks to sell a large quantity of items at a very low margin. Comparatively, Best Buy goods at a higher profit margin. ✓% 0 Check My Work A common size income statement analysis makes it easier to see what is driving a company's profits, and compare that performance to competitors. Analyze and compare Amazon.com, Best Buy, and Wal-Mart The condensed income statements through operating income for Amazon.com, Inc. (AMZN), Best Buy Co., Inc. (BBY), and Wal-Mart Stores, Inc. (WMT), for a recent fiscal year follow (in millions): Amazon $135,987 (88,265) $ 47,722 (43,369) Best Buy Wal-Mart $ 39,403 (29,963) $ 9,440 (7,547) (39) (167) $4,186 $1,854 $ 22,764 1. Prepare comparative common-sized income statements for each company. Round percentages to one decimal place. If percentages is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers Sales Cost of sales Gross profit Selling, general, and administrative expenses Operating expenses Operating income Sales Cost of sales Feedback Print Item Gross profit Selling, general, and administrative expenses Operating expenses Operating income Feedback Comparative Income statements Feedback Amazon 100 ✓ % 64.9 X % Check My Work Partially correct 35.1 ✓% 31.9 X % 0.1 X % 3.1 ✓% Best Buy 100 ✓ % 76.0 X % 24 ✓ % 19,2 X % 0.1 X % Check My Work Divide each element by sales to determine the vertical analysis percentage. 4.7 ✓ % $ 485,873 (361,256) $ 124,617 (101,853) Wal-Mart 100 ✓ % 74.4 X % 25.7 X % 20.9 X % 0 ✓ % 4.7 2. Use the common-sized analysis to compare the financial performance of the three companies. Amazon ✓has the highest gross profit on a percentage basis, but has the lowest operating income on a percentage basis. This is because of the relatively large percentage of sales that is used for selling, general, and administr ✔has relatively strong gross pro generates a very strong operating income. This is consistent with the company's business strategy, in that it seeks to sell a large quantity of items at a very low margin. Comparatively, Best Buy goods at a higher profit margin. ✓% 0 Check My Work A common size income statement analysis makes it easier to see what is driving a company's profits, and compare that performance to competitors.

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