Analyze inventory management. (LO 7)

Use the information given to analyze Amazon.com's inventory management.

Write a short report for Amazon.com's shareholders with your comments about its inventory management.

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(in millions) Sales Cost of sales Net income For the year ended For the year ended Dec. 31, 2005 $8,490 6,451 Dec. 31, 2004 $ 6,291 5,319 $ 588 Inventory (at year end) At Dec. 31, 2003 $ 359 $566 $ 480 $294