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Amazon.com Inc. Requirement 1: Calculate the Return on Equity (ROE) for Amazon.com Inc. using the following information: Net Income: $1,000,000 Average Shareholders' Equity: $10,000,000 Requirement

  1. Amazon.com Inc.
    • Requirement 1: Calculate the Return on Equity (ROE) for Amazon.com Inc. using the following information:
      • Net Income: $1,000,000
      • Average Shareholders' Equity: $10,000,000
  2. Requirement 2: Prepare a schedule of cost of goods manufactured for Amazon.com Inc. based on the following information:
    • Direct Materials Used: $3,000,000
    • Direct Labor: $2,000,000
    • Manufacturing Overhead: $1,000,000
    • Beginning Work in Process Inventory: $500,000
    • Ending Work in Process Inventory: $600,000
  • Requirement 3: Discuss how Amazon.com Inc. manages its inventory turnover ratio and its implications for financial performance.
  • Requirement 4: Calculate the Debt-to-Equity Ratio for Amazon.com Inc. using the following details:
    • Total Liabilities: $20,000,000
    • Shareholders' Equity: $15,000,000
  • Requirement 5: Analyze the impact of Amazon.com Inc.'s capital structure on its profitability and risk profile.

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