Annual Report Project Instructions

For this project, you will read and interpret information from the annual report of a publicly traded company. You can copy and paste the answers from the website directly into this document. The company we will focus on is Amazon. To retrieve Amazons annual report please do the following:

Go to https://www.sec.gov/edgar/searchedgar/companysearch.html

In the Company Name box enter Amazon and click search

Go down to AMAZON COM INC (CIK: 0001018724) with SIC 5961. Click on the CIK number with the red link.

Find the 10-k filing (annual report) dated 2017-02-10 and click on Interactive Data

Notes to Financial Statements-Description of Business and Accounting Policies

Question 1: Please provide a description of Amazons business

Question 2: What inventory costing method does Amazon use?

Question 3: What depreciation method does Amazon use for Property Plant and Equipment?

Question 4: How does Amazon account for unearned revenue?

Question 5: How many internationally-focused websites does Amazon have and what countries are they for?

Notes to Financial Statements-Acquisitions, Goodwill, and Aquired Intangible Assets

Question 6: What business did Amazon purchase in September of 2014 and why?

Notes to Financial Statements-Long Term Debt

Question 7: What is the interest rate Amazon is paying on their Notes due Dec 5, 2044?

Question 8: As of Dec 31, 2016, what are the future principal payments due after 2021?

Notes to Financial Statements-Other Long Term Liabilities

Question 9: What types of other long term liabilities does Amazon have?

Notes to Financial Statements-Commitments and Contingencies

Question 10: Provide at least 2 paragraphs summarizing Amazons current legal proceedings

Notes to Financial Statements-Stockholders Equity

Question 11: Has Amazon issued both preferred and common stock? If so, how many shares of each are outstanding as of 12/31/16?

Question 12: How many shares of common stock are available for future issuance to employees as of 12/31/16?

Financial Statements

Consolidated Statements of Operations is the same as a Consolidated Income Statement

Question 13: What was the amount of Net Sales for the year ended 12/31/16?

Question 14: What was the amount of Net Sales for the year ended 12/31/15?

Question 15: What was the Cost of Sales (Cost of Goods Sold) for the year ended 12/31/16?

Question 16: What was the Cost of Sales (Cost of Goods Sold) for the year ended 12/31/15?

Question 17: Calculate: What would be Amazons gross profit for the year ended 12/31/16?

Question 18: What was Amazons basic earnings per share for 2016?

Question 19: What was Amazons basic earnings per share for 2015?

Question 20: What was Amazons Cash and Cash Equivalents as of 12/31/16?

Question 21: What was the amount of Inventory as of 12/31/16?

Question 22: What was the amount of Accounts Payable as of 12/31/16?

Question 23: What was the amount of Unearned Revenue as of 12/31/16?

Question 24: What was the amount of Retained Earnings as of 12/31/16?

Question 25: Based on what you learned about Amazon, would you invest in Amazons stock? Why or why not? Give a detailed explanation.