Amazon.com, Inc.'s financial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented
Question:
Amazon.com, Inc.'s financial statements are presented in 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.) The complete annual reports of Amazon and Wal-Mart, including the notes to the financial statements, are available at each company’s respective website.
Instructions
a. Based on the information contained in these financial statements, determine each of the following for each company. Use Amazon's net product sales to compute gross profit information.
1.Gross profit for 2015.
2. Gross profit rate for 2015.
3. Operating income for 2015.
4. Percentage change in operating income from 2014 to 2015.
b. What conclusions concerning the relative profitability of the two companies can you draw from these data?
Financial StatementsFinancial 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...
Step by Step Answer:
Financial and Managerial Accounting
ISBN: 978-1119392132
3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso