Use the Amazon.com financial statements in Appendix A at the end of this book to answer the

Question:

Use the Amazon.com financial statements in Appendix A at the end of this book to answer the following questions.

Requirements

1. Show how Amazon computed basic earnings per share of $2.08 for 2009. (Ignore diluted earnings per share of $2.04.)

2. Prepare a T-account to show the beginning and ending balances and all activity in Retained earnings (Accumulated Deficit) for 2009.

3. How much in cash dividends did Amazon pay out during 2009, if any? Explain your answer.

4. How much treasury stock did Amazon have at December 31, 2009? Explain.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...