Question
Amazon.com, Inc. reported the following income statement figures for the year ended December 31, 2023: Net Sales: $80,000,000 Cost of Goods Sold: $50,000,000 Operating Expenses:
- Amazon.com, Inc. reported the following income statement figures for the year ended December 31, 2023:
- Net Sales: $80,000,000
- Cost of Goods Sold: $50,000,000
- Operating Expenses: $20,000,000
- Interest Expense: $2,000,000
- Income Tax Expense: $10,000,000
- Net Income: $8,000,000
- Net Sales: $80,000,000
- Cost of Goods Sold: $50,000,000
- Operating Expenses: $20,000,000
- Interest Expense: $2,000,000
- Income Tax Expense: $10,000,000
- Net Income: $8,000,000
a. Calculate Amazon.com, Inc.'s Gross Profit Margin and Operating Profit Margin. b. Determine Amazon.com, Inc.'s Return on Assets (ROA) and Return on Equity (ROE). c. Discuss how changes in Amazon.com, Inc.'s operating expenses could impact its profitability ratios. d. Analyze the effective tax rate of Amazon.com, Inc. and its implications for shareholders. e. Evaluate Amazon.com, Inc.'s earnings per share (EPS) based on the provided net income and number of outstanding shares. f. Recommend strategies for Amazon.com, Inc. to improve its profitability ratios and overall financial performance.
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Advanced Accounting
Authors: Gail Fayerman
1st Canadian Edition
978-1118037911
