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1. Forecast an Income Statement Amazon.com reports the following income statements 12 Months Ended December 31 Consolidated Statements of Operations ($ in millions) 2015 2014
1. Forecast an Income Statement
Amazon.com reports the following income statements
12 Months Ended December 31 | ||||||||||
Consolidated Statements of Operations ($ in millions) | 2015 | 2014 | 2013 | |||||||
Net product sales | $ 79,268 | $ 70,080 | $ 60,903 | |||||||
Net service sales | $ 27,738 | $ 18,908 | $ 13,549 | |||||||
Total net sales | $ 107,006 | $ 88,988 | $ 74,452 | |||||||
Operating Expenses: | ||||||||||
Cost of sales | $ 71,651 | $ 62,752 | $ 54,181 | |||||||
Fulfillment | $ 13,410 | $ 10,766 | $ 8,585 | |||||||
Marketing | $ 5,254 | $ 4,332 | $ 3,133 | |||||||
Technology and content | $ 12,540 | $ 9,275 | $ 6,565 | |||||||
General and administrative | $ 1,747 | $ 1,552 | $ 1,129 | |||||||
Other operating expenses, net | $ 171 | $ 133 | $ 114 | |||||||
Total operating expenses | $ 104,773 | $ 88,810 | $ 73,707 | |||||||
Income from operations | $ 2,233 | $ 178 | $ 745 | |||||||
Interest income | $ 50 | $ 39 | $ 38 | |||||||
Interest Expense | ($ 459) | ($ 210) | ($ 141) | |||||||
Other income (expense), net | ($ 256) | ($ 118) | ($ 136) | |||||||
Total non-operating income (expense) | ($ 665) | ($ 289) | ($ 239) | |||||||
Income (loss) before income taxes | $ 1,568 | ($ 111) | $ 506 | |||||||
Provision for income taxes | ($ 950) | ($ 167) | ($ 161) | |||||||
Equity-method investment activity, net of tax | ($ 22) | $ 37 | ($ 71) | |||||||
Net income (loss) | $ 596 | ($ 241) | $ 274 | |||||||
Net product sales growth | 15% | |||||||||
Net service sales growth | 40% | |||||||||
Cost of sales | 67% | |||||||||
Fulfillment | 12.50% | |||||||||
Marketing | 4.90% | |||||||||
Technology and content | 11.70% | |||||||||
General and administrative | 1.60% | |||||||||
Other operating expenses, net | No change | |||||||||
Interest income | $60 | |||||||||
Interest Expense | $520 | |||||||||
Other income (expense), net | No change | |||||||||
Income tax expense (% pretax income) | 38% | |||||||||
Equity-method investment activity, net of tax | No change | Forecast Amazons 2016 income statement assuming the following income statement relations ($ in millions). All percentages (other than sales growth and provision for income taxes) are based on percentage of net sales. |
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