Amazon.com, Inc.
Operating Income Statements
For the Years Ended December 31
(in millions)
	Year 2	Year 1
Product sales	$141,915	$118,573
Service sales	90,972	59,293
Total sales	$232,887	$177,866
Cost of sales	$139,156	$111,934
Fulfillment	34,027	25,249
Marketing	13,814	10,069
Technology and content	28,837	22,620
General and administrative	4,336	3,674
Other operating expense, net	296	214
Total operating expenses	$220,466	$173,760
Operating income	$12,421	$4,106

Required:

a. Prepare a vertical analysis of the two operating income statements. Round percentages to one decimal place.

Amazon.com, Inc.
Operating Income Statements
For the Years Ended December 31 (in millions)
	Year 2		Year 1
	Amount	Percent	Amount	Percent
Product sales	$	%	$	%
Service sales		%		%
Total sales	$	%	$	%
Cost of sales	$	%	$	%
Fulfillment		%		%
Marketing		%		%
Technology and content		%		%
General and administrative		%		%
Other operating expense, net		%		%
Total operating expenses	$	%	$	%
Operating income	$	%	$	%

b. Use the vertical analysis to explain the decrease in income from operations.

The vertical analysis indicates that operating income between the two years. Total expenses as a percent of total sales. There was a sizable in cost of sales as a percent of sales. There were also to technology and content, and general and administrative expenses as a percent of sales