Analysis of Financial Statements: For this milestone, you will continue to develop material to be included in your financial analysis paper. You will need to research AMAZON and obtain the last few years (2015-2018) of financial statements (information that is available to the public online) in order to answer the following questions:

A. Based on the information that you have gathered, explain the changes in financial ratios. Has anything changed in the few years of financial statements that you have obtained? What are the reasons for these changes?

B. Based on the information you have gathered, analyze the changes in the financial reports regarding cash. Be sure to examine the statement of cash flows. What are the reasons for these changes?

C. Based on the information you have gathered, analyze the changes in the financial reports regarding the account balance. What are the reasons for these changes?

D. Describe the type of valuation method that AMAZON uses and explain why it uses this method. What are the benefits of this method?

E. Based on industry trends, future plans of AMAZON, and the information you have gathered, predict how AMAZON will perform in the following year compared to competitors.

Income Statement

All numbers in thousands

Revenue	12/31/2018	12/31/2017	12/31/2016	12/31/2015
Total Revenue	232,887,000	177,866,000	135,987,000	107,006,000
Cost of Revenue	139,156,000	111,934,000	88,265,000	71,651,000
Gross Profit	93,731,000	65,932,000	47,722,000	35,355,000
Operating Expenses
Research Development	28,837,000	22,620,000	16,085,000	12,540,000
Selling General and Administrative	52,177,000	38,992,000	27,284,000	20,411,000
Non Recurring	-	-	-	-
Others	296,000	214,000	167,000	171,000
Total Operating Expenses	220,466,000	173,760,000	131,801,000	104,773,000
Operating Income or Loss	12,421,000	4,106,000	4,186,000	2,233,000
Income from Continuing Operations
Total Other Income/Expenses Net	-1,151,000	-304,000	-390,000	-687,000
Earnings Before Interest and Taxes	12,421,000	4,106,000	4,186,000	2,233,000
Interest Expense	-1,417,000	-848,000	-484,000	-459,000
Income Before Tax	11,270,000	3,802,000	3,796,000	1,546,000
Income Tax Expense	1,197,000	769,000	1,425,000	950,000
Minority Interest	-	-	-	-
Net Income From Continuing Ops	10,073,000	3,033,000	2,371,000	596,000
Non-recurring Events
Discontinued Operations	-	-	-	-
Extraordinary Items	-	-	-	-
Effect Of Accounting Changes	-	-	-	-
Other Items	-	-	-	-
Net Income
Net Income	10,073,000	3,033,000	2,371,000	596,000
Preferred Stock And Other Adjustments	-	-	-	-
Net Income Applicable To Common Shares	10,073,000	3,033,000	2,371,000	596,000