Amazon.com, Inc. (AMZN) is the largest Internet retailer in the United States. Amazon€™s income statements for two recent years follow:

a. Prepare a horizontal analysis of the income statements. Round percentages to one decimal place.
b. Interpret the results of the horizontal analysis.

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Amazon.com, Inc. Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Revenues: $ 94,665 $ 79,268 Product sales. Service sales 41,322 27,738 $ 135,987 $ 107,006 Total revenues Operating expenses: Cost of sales .. $ (88,265) $ (71,651) (17,619) (13,410) Fulfillment . Marketing (7,233) (5,254) ..... Technology and content General and administrative ...... (16,085) (12,540) (2,432) (1,747) Other operating expense (income), net Total operating expenses Operating income (167) (171) $(104,773) $ 2,233 $(131,801) $ 4,186 .....