20. IBM operates in three segments: Cloud & Cognitive Software, Global Business Services, and Systems. The following financial data is provided:
    • Cloud & Cognitive Software: Revenue - $800,000,000, Variable Costs - $400,000,000, Fixed Costs - $250,000,000
    • Global Business Services: Revenue - $500,000,000, Variable Costs - $300,000,000, Fixed Costs - $200,000,000
    • Systems: Revenue - $400,000,000, Variable Costs - $200,000,000, Fixed Costs - $150,000,000 Requirements:
    • Prepare the Income Statement for each segment.
    • Calculate the Contribution Margin for each segment.
    • Determine the Break-Even Point in dollars for each segment.
    • • Assess the overall profitability and suggest strategic improvements.

Question 1

Amazon's financial data for 2023:

• Revenues:
  • Sales Revenue: $386,064,000
  • Other Revenues: $8,126,000
• Expenses:
  • COGS: $232,887,000
  • Operating Expenses: $127,435,000
  • Interest Expense: $3,561,000
  • Tax Rate: 21%

Requirements:

1. Prepare an income statement for Amazon for the year 2023.
2. Calculate the gross profit.
3. Calculate the operating income.
4. Calculate the net income after taxes.
5. Compute the profit margin ratio for Amazon.