AMAZON.COM, INC.

CONSOLIDATED BALANCE SHEETS

(in millions, except per share data)

	December 31,
	2017				2018
ASSETS
Current assets:
Cash and cash equivalents	$	20,522			$	31,750
Marketable securities	10,464				9,500
Inventories	16,047				17,174
Accounts receivable, net and other	13,164				16,677
Total current assets	60,197				75,101
Property and equipment, net	48,866				61,797
Goodwill	13,350				14,548
Other assets	8,897				11,202
Total assets	$	131,310			$	162,648

Year Ended December 31,
	2016				2017				2018
Net income	$	2,371			$	3,033			$	10,073

Year Ended December 31,
	2016				2017				2018
Net product sales	$	94,665			$	118,573			$	141,915
Net service sales	41,322				59,293				90,972
Total net sales	135,987				177,866				232,887

1. (3 points) Compute the following ratios for Amazon for the fiscal year ended 2018 (which may conclude in early 2019 for retailers). Show your calculations in parentheses so I can trace your work if needed then post your answers:

• Gross Profit Ratio=Gross Profit Rate / Total Sales
• Return on Asset =Net Income / Average Total Assets

(2 points) Compare Amazons Gross Profit ratio and Return On Assets in 2019 to the analogous ratios with respect to the industry of your company. Based on these ratios what do you think about the asset management and usage strategies of the company. You can find the industry information from library sources or the internet. If not, you can 5-10 companies to come up with the industry ratios. Based on these ratios, is Amazon more or less liquid or solvent?

• (2 points) Are any of the differences due to the nature of your firms business, industry, or business geographic existence, and how would they affect your decision process? You can cite references to support your arguments.