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.