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Amazon.com, Inc. is analyzing its financial performance for 2023. The transactions recorded are: Transactions (in $ millions) Amount Cash Sales 500,000 Credit Sales 250,000 Cash
Amazon.com, Inc. is analyzing its financial performance for 2023. The transactions recorded are:
Transactions (in $ millions) | Amount |
Cash Sales | 500,000 |
Credit Sales | 250,000 |
Cash Payments | 300,000 |
Accounts Receivable | 120,000 |
Inventory Purchases | 200,000 |
Estimated Product Returns | 40,000 |
Requirements:
- Prepare Amazon.com, Inc.'s income statement for 2023 using the modified cash basis.
- Calculate net income considering the conservatism principle.
- Discuss the impact of estimated product returns on financial statements.
- Analyze the treatment of accounts receivable and inventory purchases under the conservatism principle.
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