A C D E Amazon.com, Inc. Base Year G H Horizontal Analysis Total Revenue Cost of Revenue Gross Profit Operating Expense Operating Income 12,421,000 2018 2019 232,887,000 280,522,000 386,064,000 173,183,000 205,768,000 291,824,000 59,704,000 74,754,000 94,240,000 47,283,000 60,213,000 71,341,000 1,454,100 22,899,000 2020 Total Revenue Cost of Revenue Gross Profit Operating Expense 2019 2020 20.45% 65.77% 18.82% 68.51% 25.21% 57.85% 27.35% 50.88% Operating Income Net Non Operating Interest Income Expense -977,000 Other Income Expense 0 Pretax Income 183,000 11,261,000 1 Tax Provision 2 Earnings from Equity Interest Net of Tax 1,197,000 9,000 -768,000 203,000 13,976,000 2,374,000 -14,000 1,092,000 2,371,000 24,178,000 Net Non Operating Interest Income Expense Other Income Expense Pretax Income 88.29% 84.36% 21.39% 11.77% -210.93% 1395.63% 24.11% 114.71% 2,863,000 16,000 Tax Provision 98.33% 139.18% Earnings from Equity Interest Net of Tax 255.56% 77.78% 3 Net Income Common Stockholders 10,073,000 11,588,000 21,331,000 Net Income Common Stockholders 15.04% 111.76% 4 16 17 18 =83/5853 Total Revenue Cost of Revenue 5 Gross Profit A Amazon.com, Inc. 6 Operating Expense i 7 Operating Income Net Non Operating Interest Income Expense 9 Other Income Expense 10 Pretax Income 11 Tax Provision 12 Earnings from Equity Interest Net of Tax 13 Net Income Common Stockholders 14 C D 2019 2020 2018 232,887,000 280,522,000 386,064,000 173,183,000 205,768,000 291,824,000 59,704,000 74,754,000 94,240,000 47,283,000 60,213,000 71,341,000 12,421,000 14,541,000 22,899,000 977,000 -768,000 -1,092,000 203,000 2,371,000 -183,000 Total Revenue Cost of Revenue Gross Profit Operating Expense G H Vertical Analysis 2018 100.00% 2019 2020 100.00% 100.00% 74.36% 73.35% 75.59% 25.64% 26.65% 24.41% 20.30% 21.46% 18.48% Operating Income 5.33% 5.18% 5.93% Net Non Operating Interest Income Expense 0.42% 0.27% -0.28% Other Income Expense -0.08% 0.07% 0.61% 11,261,000 13,976,000 24,178,000 1,197,000 2,374,000 2,863,000 9,000 -14,000 16,000 10,073,000 11,588,000 21,331,000 Pretax Income 4.34% 4.98% 6.26% Tax Provision 0.51% 0.85% 0.74% Earnings from Equity Interest Net of Tax 0.00% 0.00% 0.00% Net Income Common Stockholders 4.33% 4.13% 5.53% Cell Styles Format v DETE H3 xv fx (C3-831/83 A Te 1 2 3 Total Revenue A Apple Inc. (AAPL) C D E Base Year 2018 Horizontal Analysis 2019 2020 2019 2020 4 Cost of Revenue SGross Profit 6 Operating Expense 30,941,000 Do g0 7 Operating Income 70,898,000 Net Non Operating Interest Income Expense 9 Other Income Expense imp 10 Pretax Income den Tax Provision lang 12 Net Income Common Stockholders 14 265,595,000 260,174,000 274,515,000 163,756,000 161,782,000 169,559,000 101.839,000 98,392,000 104,956.000 34,462,000 38,668,000 63,462,000 66,288,000 2,446,000 1,385,000 890,000 -441,000 422.000 -87,000 72,903,000 65,737,000 67,091,000 13,372,000 10,481,000 9.600.000 59,531,000 55.250,000 5,741,000 Total Revenue 2.04% 3.36% Cost of Revenue 1.21% 3.54% Gross Prof 3.38% 3.06% Operating Expense 11.38% 74.97% Operating Income -10.49% 6.50% Net Non Operating Interest Income Expense Other income Expense 41.38% 6361% 195.69% 80.27% Pretax Income 5.8% -7.97% Tax Provision Net Income Common Stockholders 21.62% 27.61% 7.18% 90.36% H A > de C D E S J (as Table Delete v +88 Cell Styles Format Sort & Fiter H 2018 2019 2020 Vertical Analysis otal Revenue 2018 2019 2020 Cost of Revenue Gross Profit Operating Expense Operating Income 70,898,000 Net Non Operating Interest Income Expense 2,446,000 Other Income Expense Pretax Income Tax Provision 1,385,000 -441,000 422.000 72.903,000 65,737,000 13,372,000 10,481,000 265,595,000 260,174,000 274,515,000 163,756,000 161,782,000 169,559,000 101,839,000 98,392,000 104,956,000 30,941,000 34,462,000 38,668,000 66,288,000 890,000 -87,000 Total Revenue 100.00% 100.00% 100.00% Cost of Revenue 61.66% 67.18% 61 77% Gross Profit 18.34% 37.82% 38.23% Operating Expense 11.65% 13.25% 14.09% 63,462,000 Operating Income 2669% 24.39% 24.15% Net Non Operating interest income Expense 0.92% 0.51% 0.32% Other Income Expense 0.17% 0.16% -0.01% 67,091,000 Prefax Income 27 45% 25.27% 24.44% 9,680,000 Tax Provision 5.03% 4.01% 3.53% Net Income Common Stockholders 59,531,000 55,256,000 5,741,000 Net Income Common Stockholders 22.41% 21.24% 2.09% xfx-83/5853 Apple Inc. (AAPL) XA Te A 1 Jx 75.59%% C D E F G H . K L M N 0 DETE Do 2 1.Which company had the higher increase in total revenue from 2019 to 2020? 3 Hint: See Horizontal Analysis of both companies for questions 1 and 2 4 Amazon 5 62. Which company had the higher increase in net income from 2019 to 2020? 7 Amazon imp3. In 2020, for every dollar of revenue, Amazon has a profit of 10 Hint: See Vertical Analysis for both companies, Net Income Line den 11 Amazon $ 0.055 12 Apple $ 0.021 lang 13 ? For every dollar of revenue, Apple has a profit of ? 14 4. Cost of Revenue (COGS) is what percentage of total revenue for the year 2020 for Amazon? And for Apple? reqi 15 Hint See Vertical Analysis for both companies, Net Income Line 16 Amazon 75.59%% 12. 17 Apple 61.77% % If ve 18 " c 0 E a 2019 2020 3019 2030 Apple inc 110 105 Cument Ratio 96,334,000 5 $ 87312,000 5 132,733,000 126,385,000 Coment Assets Current Lab Te 1 A (c) Ratios 2 Amazon.com, he Current Ratio TE Cument Assets 5 Current Liabilit . 7 Inventory Tumover Ratio COGS Average Inventory 10 Beg ventory mp 11 Endentory 12 14 Net Sales en Gross Profit Percentage Ratio ang is coss 16 17 AR Tymover Ratio Jx 2 2019 Cell Styles x " M N 3030 2019 2030 1.54 134] $162,819,000 $ 143,713,000 $ 105,718,000 $105,392,000 ventory Turnover Ratio COGS Average inventory gventory End Inventory Gross Profit Percentage Rate Not Sales COGS A Tumover Ratio Net Sales Average A A A Debt to Egety Re Total Stockholder Equity Based on the Ratios for each company, which company had the higher Gren Profit Percentage in 2019 and 20207 2019 3020 How many days does it take for Apple and Amama to sell through their inventory in 2020? Amaron Apple Which company had the riskler debt-to-equity ratio in 2019 and 20207 (Please refer to Financial Statement Analysis Notes) 2019 2020 Which company has the "best" current ratio in 2019 and 20207 (Please refer to Financial Statement Analysis Notes) 2019 2020 Which company is collecting their accounts receivable (at receivables) faster in 20207 equ 18 Not Salm 2. 15 Average A 20 A 21 End AM y 22 3 23 Debt-to-Equity Rao er 24 Total bil 25 Total Stockholder Equity for 26 27 (d) L 26 29 30 11 31 32 33 34 35 36 iv. 37 38 39 40 43 42 43 Amaron Apple Dele Form