Question: I need help converting Amazon's Income statement for FY2017 into a vertical analysis where net sales is 100%. I'm trying to do a direct comparison
I need help converting Amazon's Income statement for FY2017 into a vertical analysis where net sales is 100%. I'm trying to do a direct comparison with Target's income statement for FY2017. I pulled both from Yahoo Finance. I'm using Target's categories on the income statement, and trying to convert Amazon's into these categories. Please help!
Amazon's Income Statement
| Net product sales | $ | 94,665 | |
| Net service sales |
| 59,293 | |
| Total net sales |
| 177,866 | |
| Operating expenses: |
| ||
| Cost of sales |
| 111,934 | |
| Fulfillment |
| 25,249 | |
| Marketing |
| 10,069 | |
| Technology and content |
| 22,620 | |
| General and administrative |
| 3,674 | |
| Other operating expense, net |
| 214 | |
| Total operating expenses |
| 173,760 | |
| Operating income |
| 4,106 | |
| Interest income |
| 202 | |
| Interest expense | ) |
| (848 |
| Other income (expense), net |
| 346 | |
| Total non-operating income (expense) | ) |
| (300 |
| Income before income taxes |
| 3,806 | |
| Provision for income taxes | ) |
| (769 |
| Equity-method investment activity, net of tax | ) |
| (4 |
| Net income | $ | 2,371 | |
| Basic earnings per share | $ | 5.01 | |
| Diluted earnings per share | $ | 4.9 | |
| Weighted-average shares used in computation of earnings per share: |
| ||
| Basic |
| 480 | |
| Diluted |
| 493 |
Target's Income Statement (USE THESE CATEGORIES)
| All numbers in thousands | |
| Revenue | 1/28/17 |
| Total Revenue | 69,495,000 |
| Cost of Revenue | 48,872,000 |
| Gross Profit | 20,623,000 |
| Operating Expenses | |
| Research Development | - |
| Selling General and Administrative | 13,356,000 |
| Non Recurring | - |
| Others | 2,298,000 |
| Total Operating Expenses | - |
| Operating Income or Loss | 4,969,000 |
| Income from Continuing Operations | |
| Total Other Income/Expenses Net | - |
| Earnings Before Interest and Taxes | 4,969,000 |
| Interest Expense | 1,004,000 |
| Income Before Tax | 3,965,000 |
| Income Tax Expense | 1,296,000 |
| Minority Interest | - |
| Net Income From Continuing Ops | 2,669,000 |
| Non-recurring Events | |
| Discontinued Operations | 68,000 |
| Extraordinary Items | - |
| Effect Of Accounting Changes | - |
| Other Items | - |
| Net Income | |
| Net Income | 2,737,000 |
| Preferred Stock And Other Adjustments | - |
| Net Income Applicable To Common Shares | 2,737,000 |
AMAZON's Income Statement - Reformatted (in millions)
| Net product sales | 94,665 | ||
| Net service sales | 59,293 | ||
| Total net sales | 177,866 | ||
| Oprating expenses | |||
| Cost of sales | 111,934 | ||
| Fulfillment | 25,249 | ||
| Marketing | 10,069 | ||
| Technology and content | 22,620 | ||
| General & administrative | 3,674 | ||
| Other operating expense, net | 214 | ||
| Total operating expenses | 173,760 | ||
| Operating income | 4,106 | ||
| Interest income | 202 | ||
| Interest expense | -848 | ||
| Other income (expense), net | 346 | ||
| Total non-operating income (expense) | -300 | ||
| Income before income taxes | 3,806 | ||
| Provision for income taxes | -769 | ||
| Equity-method investment activity, net of tax | -4 | ||
| Net income | 2,371 | ||
| Basic Earnings per share | 5 | ||
| Diluted earnings per share | 5 | ||
| Weighted-average shares used in computation of earnings per share: | |||
| Basic | 480 | ||
| Diluted | 493 | ||
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