Analyze AMAZON'S company's treatment of Intangible Assets.

Using their financial statement, your analysis should include the horizontal and vertical analysis of the balance sheet and income statement for the two most recent fiscal years. Discuss any solvency and profitability analysis using at least two measures which are relevant to the Intagible Assets. Identify (by name) the method used by AMAZON to account for their Intagible Assets (if applicable) and how they treat their Intagible Assets in relation to their financial statements. Indicate significant increases/decreases between the two years and suggest probable reasons for those changes. Include each type of solvency and profitability measure used, the reason you used it, the calculation, and what it tells you about AMAZON'S Intangible Assets and any other relevant information that will strengthen your analysis.

(2015 & 2016 balance sheet, income (operating) statement and intangible assets reports are attached).

Subject Accounting 1105 (Wild 22nd edition chapter 17)

AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 3 2015 2016 ASSETS Current assets: s 15,890 9.334 Cash and cash equivalents Marketable securities 3,918 6,647 Inventories 0,243 11.46 Accounts receivable, net and other 5,654 8,339 Total current assets 35.705 45.78 Property and equipment, net 21,838 11 Goodwi 3,759 3,78 Other assets 3,445 4.723 Total assets 64,747 83,402 LIABILITIES AND STOCKHOLDERS EOUITY Current liabilities: Accounts payable 20,397 25,309 Accrued expenses and other 0,372 13.739 Unearned revenue 4,768 Total current liabilities 33,887 3.816 Long-term debt 8,227 7,694 Other long-term liabilities 9,249 2,607 Commitments and contingencies (Note 7) Stockholders' equity: Preferred stock, S0.01 par value: Authorized shares 500 Issued and outstanding shares none Common stock, $0.01 par value: Authorized shares 5,000 Issued shares 494 and 500 Outstanding shares 471 and 477 Treasury stock, at cost (1,837 837) Additional paid-in capital 13,394 7.186 Accumulated other comprehensive loss (723) 985) Retained earnings 2,545 4.916 Total stockholders' equity 13,384 9.285 Total liabilities and stockholders' equity 64,747 83,402 See accompanying notes to consolidated financial statements. 39