Analyze Amazon.com Amazon.com, Inc. (AMZN) is the largest Internet retailer in the United States. Amazon's income statements for two recent years follow: Amazon.com, Inc. Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Revenues: Product sales $94,665 41,322 $79,268 27,738 Service sales Total revenues $135,987 $107,006 Operating expenses: Cost of sales Fulfillment Marketing Technology and content General and administrative $(88,265) $(71,651) (17,619) (13,410) (7,233) (5,254) (16,085) (12,540) (2,432) (1,747) (167) (171) $(131,801) $(104,773) $4,186 $2,233 Other operating expense (income), net Total operating expenses Operating income a. Prepare a horizontal analysis of the income statements. Round percentages to one decimal place. Amazon.com, Inc. Income Statements For the Years Ended December 31 (in millions) Increase/(Decrease) Year 2 Year 1 Amount Percent Revenues: Product sales $94,665 $79,268 $ 173,933 143.7 X % Service sales 41,322 27,738 69,060 56.3 % Total revenues $135,987 $107,006 $ 242,993 100 % Operating expenses: Cost of sales $(88,265) $(71,651) $ -159,916 131.9 % Fulfillment (13,410) -31,029 25.5 % (17,619) (7,233) Marketing (5,254) -12,487 10.2 % Technology and content (16,085) (12,540) -28,625 23.5 % General and administrative (2,432) (1,747) -4,179 3.4 % Other operating expense (income), net (167) (171) -338 0.3 % Total operating expenses $(131,801) $(104,773) $ -236,574 194.8% Operating income $4,186 $2,233 $ 6,419 5.2 %