Question
27-6 How do I make EPS, rate of return on sales and stockholders' equity, and number of times interest earned for two years? Amazon.com is
27-6
How do I make EPS, rate of return on sales and stockholders' equity, and number of times interest earned for two years?
Amazon.com is a multinational e-commerce company that earns revenues from the sale of books, e-books, music, software, electronics, and other consumer goods. The following information is taken from the 2016 annual report for Amazon.com:
(in millions) 2016 2015
Net sales $135,987 $107,006
Income before interest and taxes $4,376 $2,027
Net income/(loss) $2,371 $596
Interest expense $484 $459
Stockholders' equity
(on December 31, 2014, $10,741) $19,285 $13,384
Common stock,
par value $0.01, December 31 $5 $5
Shares of common stock $477 $471
Hello tutor I need help making the following for both years. Can you help me compare and comment on them so that I know what is going on?
a. EPS of common stock
b. Net income to net sales
c. Net income to average common stockholders' equity
d. Times interest earned ratio
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