Expand Your Critical Thinking 5-03 a-b (Part Level Submission) Amazon.com, Inc.'s financial statements are presented in Appendix D. Click here to view Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. (Use Wal-Mart's January 31, 2016, financial statements for comparative purposes.) Instructions for accessing and using the complete annual reports of Amazon and Wal-Mart, including the notes to the financial statements, are also provided in Appendices D and E, respectively. Click here to view Appendix E. (a) Your answer has been saved and sent for grading. See Gradebook for score details. Based on the information contained in these financial statements, determine each of the following for each company. Use Amazon's net product sales to com gross profit information. (Enter the amounts in millions. Round percentages to 1 decimal place, e.g 15.2%.) Amazon Wal-Mart For the Year Ended December 31, 2015 For the Year Ended January 31, 2016 (1) 35355 121146 $ $ (2) Gross profit. Gross profit rate. Operating income. 33.04 % 25.13 % (3) 2233 24105 $ $ % % (4) Percentage change in operating income from 2014 to 2015. 11.5 1.02 increase decrease (b) What conclusions concerning the relative profitability of the two companies can you draw from these data? (Round percentages to 1 decimal place, e.g 15.2%.) Wal-Mart has a much gross profit and gross profit rate than Amazon. This can be explained by Wal-Mart's markup. Wal-Mart's operating income by % while Amazon's by %. by % during 2015 causing its operating income to Amazon's sales revenue significantly. Expand Your Critical Thinking 5-03 a-b (Part Level Submission) Amazon.com, Inc.'s financial statements are presented in Appendix D. Click here to view Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. (Use Wal-Mart's January 31, 2016, financial statements for comparative purposes.) Instructions for accessing and using the complete annual reports of Amazon and Wal-Mart, including the notes to the financial statements, are also provided in Appendices D and E, respectively. Click here to view Appendix E. (a) Your answer has been saved and sent for grading. See Gradebook for score details. Based on the information contained in these financial statements, determine each of the following for each company. Use Amazon's net product sales to com gross profit information. (Enter the amounts in millions. Round percentages to 1 decimal place, e.g 15.2%.) Amazon Wal-Mart For the Year Ended December 31, 2015 For the Year Ended January 31, 2016 (1) 35355 121146 $ $ (2) Gross profit. Gross profit rate. Operating income. 33.04 % 25.13 % (3) 2233 24105 $ $ % % (4) Percentage change in operating income from 2014 to 2015. 11.5 1.02 increase decrease (b) What conclusions concerning the relative profitability of the two companies can you draw from these data? (Round percentages to 1 decimal place, e.g 15.2%.) Wal-Mart has a much gross profit and gross profit rate than Amazon. This can be explained by Wal-Mart's markup. Wal-Mart's operating income by % while Amazon's by %. by % during 2015 causing its operating income to Amazon's sales revenue significantly