Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Amazon Inc. provided the following data for the current year: Total Sales: $1,200,000,000 Cost of Sales: $800,000,000 Operating Expenses: $250,000,000 Interest Expense: $30,000,000 Tax Rate:

Amazon Inc. provided the following data for the current year:

  • Total Sales: $1,200,000,000
  • Cost of Sales: $800,000,000
  • Operating Expenses: $250,000,000
  • Interest Expense: $30,000,000
  • Tax Rate: 25%
  • Total Assets: $1,000,000,000
  • Total Liabilities: $700,000,000
  • Shareholders' Equity: $300,000,000

    Requirements:


      1. Prepare an Income Statement for Amazon.
      2. Calculate the Gross Margin and Net Profit Margin.
      3. Determine the Return on Assets (ROA) and Return on Equity (ROE).
      4. Calculate the Debt-to-Equity Ratio and Interest Coverage Ratio.

    Step by Step Solution

    There are 3 Steps involved in it

    Step: 1

    blur-text-image

    Get Instant Access to Expert-Tailored Solutions

    See step-by-step solutions with expert insights and AI powered tools for academic success

    Step: 2

    blur-text-image

    Step: 3

    blur-text-image

    Ace Your Homework with AI

    Get the answers you need in no time with our AI-driven, step-by-step assistance

    Get Started

    Recommended Textbook for

    Accounting Information Systems

    Authors: Marshall B. Romney, Paul J. Steinbart

    12th edition

    132552620, 978-0132552622

    More Books

    Students also viewed these Accounting questions

    Question

    1. Use questioning to check your understanding.

    Answered: 1 week ago