Attached is the project for the assignment. I will need a draft by Feb 20th but the actually project is not due until Feb 27th. My weekly discussion post are attached as well they are title instruction.doc just stroll down and you will see them.

Please post your draft of the SEC 10-K power point presentation in the discussion conference no later than February 20, 2017. (you do not need to post your paper -only your power point slides). Post comments on the work of at least one other student so everyone has a minimum of one set of comments. After our discussion week, make any changes you wish to your SEC 10-K presentation and submit the file in the assignment folder no later than February 27, 2017. Details instructions are posted in the syllabus (Project description 220).

Please let me know if you have questions.

Thanks do much!

Please post your draft of the SEC 10-K power point presentation in the discussion conference no later than February 20, 2017. (you do not need to post your paper -only your power point slides). Post comments on the work of at least one other student so everyone has a minimum of one set of comments. After our discussion week, make any changes you wish to your SEC 10-K presentation and submit the file in the assignment folder no later than February 27, 2017. Details instructions are posted in the syllabus (Project description 220). Additional guidance for SEC 10-K Project Power Point Slides (for general instructions - look in the table of Contents Syllabus Project Description _220) Use your weekly discussion requirements in completing your first draft of the presentation Post a draft of your presentation in the SEC 10-K Discussion for Week Six. Your power point slides presentation is to be submitted as an Assignment by February 27 in your assignment folder. No more than 10 -12 power point slides. The first slide must include the name of the company, the name of the class, student's name and professor's name. The last slide will contain at least two citations (references). The remaining slides must contain a reflection of your answers and completion of weekly requirements for weeks one through five and to include the requirements listed below. The beginning of the slide(s) after the first slide need to include 1) a brief summarized description of your company's business, 2) your company's products and 3) a listing of your company's divisions (or segments) Do not cut and paste from your weekly answers and requirements or from the information in your company's SEC 10-K reports. Make sure that all sides contain approximately the same amount of information. Use visual cues like bullets, graphics, tables, spreadsheets, color etc. to engage and captivate your audience. You could use bar graphs to show the sales (revenues), gross profit, net income and inventory balances for the three years with footnotes showing the changes (trends) in amounts and percentages. Imagine that you are presenting this information to an audience of potential investors. How would they react to each slide? How do the slides portray the financial condition, share of the market and control over operations of your company? Include the balances for three years for sales, gross profit, net income and inventory. The amounts shown throughout the power point slides need to be the same as that on the company's SEC 10-K report. Make sure the slides do not contain errors (mathematically, misspelled words or grammar errors). Feel free to attach an audio component if you wish to enhance it even further. Week 1 AMAZON.COM, INC. Actions for AMAZON.COM, INC. Jennifer Tyler posted Jan 9, 2017 1:00 PM Subscribe This company has grown overtime reaching its highest online holiday market share at 36.9 beating Best-buy, Target, Walmart, and Macy for the holiday sales. Which all of the are really good competitive stores and Amazon is just an online market. Everyone whom I have encounter with said they love to shop at Amazon and I'm just curious of how their rating went through the roof with sales putting them at their highest when people actually go to other stores and shop. These stores also have online shopping but people chose to shop at Amazon. What makes them so special. What attracted people to Amazon. I'm not an Amazon shopper, if by chance of doing this project might persuasive me or not to shop at Amazon. corporation's SEC 10-K report for the most recent year. https://www.sec.gov/Archives/edgar/data/1018724/000101872415000006/amzn20141231x10k.htm Years on Fortune 500 List: 18 Income Statement pg17 Statement of Cash Flows pg 38 Statement of Stockholders Equity pg 42 Balance Sheet pg 41 Week 2 SEC-10-K Financial Statements (P2) Amazon Actions for SEC-10-K Financial Statements (P2) Amazon Jennifer Tyler posted Jan 21, 2017 5:33 PM Subscribed Subject - Sec 10-K Company: Amazon.com, Inc. https://www.sec.gov/Archives/edgar/data/1018724/000101872416000172/amzn20151231x10k.htm Answer 1: The heading of Income statement is 'Consolidated Statements of Operations'. The first line is: 2015 2014 2013 Net product sales $60,903 $79,268 $70,080 Answer 2: The heading of Balance Sheet is 'Consolidated balance Sheets'. The first five lines are: 2015 2014 ASSETS Current Assets: Cash and cash equivalents $15,890 $14,557 Marketable Securities 3,918 2,859 Inventories 10,243 8,299 Accounts receivable, net and other 6,423 5,612 Total current assets $36,474 $31,327 Answer 3: Stockholders' equity 2015 2014 Preferred stock. $0.01 par value: Authorized shares - 500 Issued and outstanding shares - none -- -- Common stock, $0.01 par value: Authorized shares - 5,000 Issued shares - 494 and 488 Outstanding shares - 471 and 465 5 5 Treasury stock, at cost (1,837) (1,837) Additional paid-in capital 13,394 11,135 Accumulated other comprehensive loss (723) (511) Retained earnings 2,545 1,949 Total Stockholders' equity 13,384 10,741 Answer 4: Net Income (loss) 2015 2014 2013 $596 $(241) $274 Week 3 Amazon SEC 10-K Posting - Income Statement; Notes to the FS Actions for 'Amazon SEC 10-K Posting - Income Statement; Notes to the FS' Jennifer Tyler posted Jan 28, 2017 10:16 AM Subscribed This page automatically marks posts as read as you scroll. Adjust automatic marking as read setting Answer 1: The fiscal year of Amazon, Inc. is December 31 each year. Answer 2: Inventory consists of the goods that are available for sale. The inventory is valued using first-infirst-out (FIFO) method. It is a method of inventory valuation in which the goods purchased first are sold first. It is considered as more correct method of inventory valuation as it relates to the actual flow of goods. Inventory is valued at lower of cost and market value. As of December 31, 2015, the company had inventory of $10,243 million. Answer 3: The company uses multi-step income statement. Answer 4: AMAZON.COM, INC. ($ in millions) Year Ended December 31, 2015 2014 Net product sales $ 79,268 $ 70,080 Net service sales $ 27,738 $ 18,908 Total net sale $ 107,006 $ 88,988 Cost of goods sold $ 71,651 $ 62,752 Gross profit $ 35,355 $ 26,236 Gross profit percentage 33.04% 29.48% During the fiscal year 2015 the total net sale increased by $18,018 million or 20.25% whereas the cost of goods sold increased by $8,899 million or 14.18%. Owing to it the gross profit increased by 3.56% during fiscal year 2015 and stood at $35,355 as compared to $26,236 during fiscal year 2014. Both sales and gross profit increased during fiscal year 2015. Total net sale has generated more gross profit both as absolute dollar value as well as in terms of percentage. Week 4 Amazon.com, Inc.; NASDAQ:AMZN SEC Form 10-K (2016). Amazon.com, Inc. Retrieved from: https://www.sec.gov/Archives/edgar/data/1018724/000101872416000172/amzn20151231x10k.htm 1. What is the name of the auditor? Viewing their signature, what city do you see? Ernst & Young LLP, Independent Registered Public Accounting Firm. Seattle, Washington. 2. The first page of the SEC 10-K is very standard and lists two key locations. Using this information, post the state of incorporation and the city and state of the corporate headquarters for your SEC 10-K. State of incorporation: Delaware Corporate headquarters: Seattle, Washington. 3. Returning to Item 8, near the auditor's report (this is the letter they sign, giving their opinion on whether the financial statements are fairly presented in adherence with U.S. GAAP), locate the letter regarding internal control. This letter is signed by the company's management. What are their names and titles? Name /s/ Jeffrey P. Bezos Jeffrey P. Bezos Title Chairman of the Board, President, and Chief Executive Officer (Principal Executive Officer) /s/ Brian T. Olsavsky Brian T. Olsavsky Senior Vice President and Chief Financial Officer (Principal Financial Officer) /s/ Shelley Reynolds Shelley Reynolds Vice President, Worldwide Controller (Principal Accounting Officer) /s/ Tom A. Alberg Tom A. Alberg Director /s/ John Seely Brown John Seely Brown Director /s/ William B. Gordon William B. Gordon Director /s/ Jamie S. Gorelick Jamie S. Gorelick Director /s/ Judith A. McGrath Judith A. McGrath Director /s/ Alain Moni Alain Moni Director /s/ Jonathan J. Rubinstein Jonathan J. Rubinstein Director /s/ Thomas O. Ryder Thomas O. Ryder Director /s/ Patricia Q. Stonesifer Patricia Q. Stonesifer Director References SEC Form 10 - 10-K (2016). Amazon.com, Inc. Retrieved from: https://www.sec.gov/Archives/edgar/data/1018724/000101872416000172/amzn20151231x10k.htm week 5 Week 5: SEC 10-K: Receivables; Fixed Assets Actions for 'Week 5: SEC 10-K: Receivables; Fixed Assets' Subscribe Hide Description Read the prompt below and click the title above to respond. Using the SEC 10-K for your company, answer the following questions: 1. Reading the notes to the financial statements, as well as the balance sheet, post information about the Accounts Receivable for your company. Who owes the company money? 2. Search for the phrase "Bad Debts" or Allowance (for collectible accounts). When you read the balance sheet, you may see that the receivables are listed as a net of $x,xxx to show the Allowance for Bad Debts. Comment about the changes in Accounts Receivable and the Allowance for Bad Debts. Are they increasing or decreasing? How does this relate to sales (are sales increasing or decreasing)? 3. Property, Plants, and Equipment / PPE (Capital Assets; Fixed Assets): Comment about PPE and accumulated depreciation. How are these values changing from year to year: PPE, Accumulated Depreciation, and Net PPE? Amazon.com Inc. is a company that operates as an online retailers in North America and globally. The company operates in two segments: internationally and North America. Amazon.com serves consumers through retail websites such as amazon.com. The company also offers programs that assist the seller to sell their products on company websites, and their own branded websites. In addition, there are programs that allow authors, filmmakers, musicians, app developers and others to publish and sell the content. The company also serves developers and enterprises through amazon web services that provide storage, compute, database, applications, analytics and deployment services that enable virtually businesses. Amazon.com also manufactures and sells electronics devices that include fire tablets, fire TVs, echo and fire phones. The company offers amazon prime which is an annual membership program that provides free shipping of various items, access to instant streaming of movies and TV episodes and give access to books to borrow and read on a kindle device and provides publishing, digital content subscriptions and advertising services. The company included \"Accounts receivable, net and other\" in consolidated balance sheets are amounts primarily related to vendor and customer receivables. As of December 31, 2014 and 2013, vendor receivables, net, were $1.4 billion and $1.3 billion, and customer receivables, net, were $1.9 billion and $1.7 billion. The company estimate losses on receivables based on known troubled accounts and historical experience of losses incurred. Receivables are considered impaired and written-off when it is probable that all contractual payments due will not be collected in accordance with the terms of the agreement. The allowance for doubtful accounts was $190 million, $153 million, and $116 million as of December 31, 2014, 2013, and 2012. Additions to the allowance were $225 million, $172 million, and $136 million, and deductions to the allowance were $188 million, $135 million, and $102 million as of December 31, 2014, 2013, and 2012. The company who owes amazon are the company that uses the company services. The company that have subscribed to the company services owes the company money and these are recorded as account receivables. The company bad debts accounts are increasing each year as seen from the financial statements. The depreciation expense on the PPE was $3.6 billion, $2.5billion, and $1.7 billion, that includes amortization of property and equipment acquired under capital leases of $1.5 billion, $826 million, and $510 million for 2014, 2013 and 2012. Depreciation is recorded on a straight line basis over the estimated lives of the assets. The accumulated depreciation is increasing due to increase in the number of assets that the company have. Another reason is because the company assets are decreasing in value each year leading to an increasing in accumulated depreciation Project Descriptions SEC 10-K Paper You will be asked to select a company that is publically traded. You must research and secure the SEC 10-K Annual Report for the most recent year. This is often available at the company web site. Look for "Investor Information" or "Company Information". Save the file to your computer for access. There is no need to print as the report is usually 100 pages or more. 1. 2. 3. 4. 5. 6. 7. 8. 9. Post the name of your company in the SEC 10-K company for my approval in the week 1 Discussion. Each student must select a different company so read the company names selected by classmates. You will use this company for discussion in the discussions during the semester. You will write a 2 - 3 page paper, single spaced, one inch margins, 12 pt font, with double space between paragraphs. Your paper should comment on the financial statements for your company as they relate to the information presented through week 5 material for our class, including the notes to the financial statements. ** Use headings in your paper such as Accounts Receivable and Inventory (topics from our textbook; other examples would be Balance Sheet and Income Statement). Please keep your paper to no more than 3 pages The report will be submitted after week 5 material on Property, Plant and Equipment (PPE). Do not consider material from weeks 7 and 8 in your paper. Take care to avoid academic dishonesty. Write your paper, read it, and edit. Use your own words. Please include a brief introduction of your company as well as a conclusion/summary at the end. You will also be required to include the Income Statement and Balance Sheet as an attachment to your report (you can cut and paste directly from the 10-K report). APA style is required for citations and a reference list. Use your own words. The reference list is most important! Ask questions if any of the requirements are unclear. 10. Additional guidance for your paper and resources: 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. Page count does not include title page, tables and exhibits, table of contents, and reference list Please include a title page (include your name on the title page) Include a reference list (business classes use APA format) Include in text citations (business classes use APA format) Your paper should use one-inch margins on the left, right, top, and bottom of each page, and font set at 12 point. Take care to comply with the UMUC policy for academic honesty Write your paper, in your own words, using accounting words from our textbook and explaining how these relate to the financial statements of your company Our discussion postings during the semester should assist you in completing this paper Visit the Accounting Toolbox in the Course Content of our LEO classroom The Accounting Toolbox is a constant resource in our UMUC undergraduate accounting courses Links and explanations to assist you with this paper may appear in this resource Additional information will be posted in the Week 1 Discussion area of Leo Classroom. Please make sure you review carefully and ask questions if you have any. SEC 10-K Power Point Presentation You will also be required to prepare a brief power point file of no more than 10 slides. Post the power point presentation in the discussion area for comments by other students. After you read the comments you may wish to make changes to your power point file before submitting it in the assignment folder along. Include a reference list in APA format. Ask questions if any of the requirements are unclear. You are required to post comments on the work of at least one other student who does not yet have comments so everyone has at least one set of comments. Do not wait until the last day to post your power point file so everyone has a chance to visit the files. Amazon.com, Inc. Class: Student's Name: Professor's Name: About Amazon.com. Inc. Industry: Electronic Commerce Founder: Jeff Bezos Founded On: July 5, 1994 Headquarters: Seattle, Washington, United States Area Served: Worldwide Chairman, Founder and CEO: Jeff Bezos Services: Web Hosting, Online shopping, Content Distribution Ticker Symbol: AMZN About Amazon.com. Inc. Products: Bookstore, Software, Video Games, Electronics, Apparel, Jewelry, Toys, Cloud Computing, Consumer Electronics, Kindle e-readers, Fire tables, Apps, DVDs, etc. Subsidiaries: Amazon Web Services, Photography Review, Audible.com, alexa, A9.com, Internet Movie Database, Junglee.com, ComiXology, Twitch.tv, etc. Division and Segments CreateSpace and Kindle Direct Publishing It is the largest marketplace of the world for books and the company holds 67% of the market share Cassell, W. (2016). The companies assist amateur and professional authors to get their book printed and to launch them to the market. The two subsidiary companies that work for this segment are CreateSpace and Kindle direct Publishing. Division and Segments Amazon Web Services This segment allows the other organizations to use cloud computing technology of Amazon by payment of monthly subscription fee. Cassell, W. (2016) suggested that this solutions provides electronic file archiving, software development sandbox testing, and digital media hosting. Division and Segments Amazon Payments This segment of Amazon assists the corporations to have a technological infrastructure and to make their operations more efficient with less expensive. It also allows the customers to fulfill their orders on the websites of third parties by providing their credit card details that are stored in their account with Amazon. Revenue Operating Income Net Income References Cassell, W. (2016) 3 Amazon Business Segments to Watch in 2016. Retrieved from: http://www.investopedia.com/articles/investing/ 021016/3-amazon-business-segments-watch2016.asp Form 10-K (2015) Amazon.com, Inc. Retrieved from: https://www.sec.gov/Archives/edgar/data/1018724 /000101872416000172/amzn20151231x10k.htm#s72E3776A647627199433ABB21 2 90C044 Thanks for your time... SEC 10-K Report: Amazon.com, Inc. Jennifer Tyler Accounting I February 27, 2017 Executive Summary Financial statements tell about the financial performance of the company during a period or year as well as about the financial health of the company. They tell about net income earned, accounts receivable, stockholder's equity at the end of year, total liabilities, accounts payable, etc. In nutshell the financial statement gives the result of the business activities that have taken place during a certain period of time. The financial statements are prepared in accordance to principles of GAAP or IFRS which present the financial statements in precise manner. The explanations to various items of financial statements are given in notes to accounts. Management discussion and analysis is also useful in determining financial health of the company. It enables the user to come to know about the performance of the company during previous year and the forecasts of management in forthcoming year. This paper makes attempts to analyze the SEC 10-K report of Amazon.com, Inc. It takes into consideration the four budgetary proclamations, to be specific, articulation of wage, accounting report, explanation of money streams and articulation of stockholder's value. The paper also tries to explain the various accounting terms from balance sheet and income statement and explores how the final numbers are coming. Introduction to Amazon.com, Inc. Amazon.com is a United States based multinational company. The primary business of the company is electronic trade and distributed computing. The organization was established by Jeff Bezos on July 5, 1994. The central stations of the company are located at Seattle, Washington. The company started its business as online bookseller, but later on made diversifications in its business and started selling software, video games, CDs, DVDs, audiobook, furniture, food, apparel and jewelry. The services offered by Amazon.com include online shopping, content distribution and web hosting. Jeff Bezos is the Chairman and Chief Operating Officer of the company and Werner Vogels is its Chief Technical Officer. He holds more than 17% of the common stock of the company. The company has completed a number of acquisitions and mergers so far. During 2015 the company became most valuable retailer of United States by market capitalization by surpassing Wal-Mart Stores, Inc. and was the most valuable public company of United States during the third quarter of 2016. The organization has its operations worldwide and it has isolate sites for United States, Mexico, United Kingdom, India, France, Japan, Canada, Brazil, Germany, Australia, Italy, Netherlands and Spain. The subsidiaries of the company are A9.com, Zappos, Amazon Web Services, Junglee.com, Alexa Internet, Internet Movie Database, Digital Photography, etc. The stock of the company is traded at NASDAQ and its ticker symbol is AMZN. The stock of Amazon.com, Inc. is also component of S&P 500, NASDAQ 100 and S&P 100. The slogan of the company is 'Work Hard, Have Fun, Make History'. Income Statement or Consolidated Statement of Operations Income statement is one of the financial statements that is helpful in determining the financial performance of the business over a period of time. This statement enables the users to determine if the company has earned profits or has sustained losses. The income statement can be prepared in two forms: single-step income statement and multi-step income statement. Amazon.com, Inc. prepares multi-step income statement. Total Net Sales It is the dollar value of goods that the company has made during the accounting period. The sale of Amazon.com, Inc. is divided into two parts: Net product sales and Net service sale. Net product sale of the company was $79,268 million during fiscal year 2015 which increased by $15,397 million or 19.42% and stood at $94,665 million. The net service sale of the company was $27,738 million which increased by 13,584 million or 48.97% and stood at 41,322 million. The total bet sale of the company was $135,987 million. Cost of Sales It is the cost that is directly attributable to the production of goods or services. In other words it is the total cost of direct material, direct labor and direct overheads. The cost of goods sold of the company was $71,651 million which increased by $16,614 or 23.19% and stood at $88,265 million. Operating Income It is the income earned by the company from its operations after deducting all of its operating expenses. It does not include the impact of interest and taxes at the time of calculating net earnings and is also called earnings before interest and taxes. The operating income of Amazon.com, Inc. has shown an increasing trend during last three years and has increased from $148 million during the fiscal year 2014 to $4,186 million during fiscal year 2016. Net Income It is the income earned by the company after deducting all of its expenses. It is also called residual income. The net income of Amazon.com, Inc. was $596 million during the fiscal year 2015 which increased by $1,775 million or 297.82% during fiscal year 2016 and stood at $2,371 million. Consolidated Balance Sheets Balance sheet is one of the important documents of financial statements. It summarizes the assets, liabilities and capital and shows the financial position of the company at a particular point of time. It gives a preview of the money related position of the organization. It depends on the condition Assets = Liabilities + Stockholder's Equity. Cash and Cash Equivalents Cash and cash reciprocals are basically made out of US and remote government organization securities, currency advertise reserves, AAA evaluated stores and other venture review securities. The organization records cash and cash equivalents at its fair value. It increased from $15,890 million in the fiscal year 2015 to $19,334 million during the fiscal year 2016 showing an increase of $3,444 million or 21.67%. Property and Equipment These are long term tangible assets of the company and are shown in non-current assets section of the balance sheet. The property and equipment of the Amazon.com, Inc. was $21,938 million which increased by $7,176 million or 32.71% and stood at $29,114 million. Company charges straight-line depreciation on its property and equipment over the estimated useful life of the assets. Inventories The inventories of the company are valued at market value or cost whichever is lower. The company accounts its inventory using first-in, first-out method of inventory valuation. The company also saw an increase in inventories and they increased fro, $10,243 million during the fiscal year 2015 to $11,461 million during the fiscal year 2016 marking an increase of $1,218 million or 11.89%. Accounts Receivables It is the amount that is primarily related to vendors, sellers and customers. The company estimates loss on accounts receivables on the basis of known troubled accounts and historical experience. Accounts receivables were $5,654 million during the fiscal year 2015 which increased to $8,339 million in the fiscal year 2016. The total accounts receivables increased by $2,685 million or 47.49%. The allowance of doubtful debts also increased from $189 million in the fiscal year 2015 to $237 million during the fiscal year 2016. Long-Term Debts These are the debts in form of bonds and notes. The long-term debts of the company were $7,694 million during the fiscal year 2015, which increased by $533 million or 6.93% and stood at $8,227 million during the fiscal year 2016. Conclusion The analysis of financial statements reveals that the company is in good financial health. The revenue and profitability of the company has increased, during the last three years. The balance sheet also shows increase in assets and liabilities of the company. It suggests that the company is in good financial health and will earn high profit in future. References Form 10-K (2016) Amazon.com, Inc. Retrieved from: https://www.sec.gov/Archives/edgar/data/1018724/000101872417000011/amzn20161231x10k.htm#s485471DB1C595CF4AB3B92C717CC90E4 SEC 10-K Report: Amazon.com, Inc. Jennifer Tyler Accounting I February 27, 2017 Executive Summary Financial statements tell about the financial performance of the company during a period or year as well as about the financial health of the company. They tell about net income earned, accounts receivable, stockholder's equity at the end of year, total liabilities, accounts payable, etc. In nutshell the financial statement gives the result of the business activities that have taken place during a certain period of time. The financial statements are prepared in accordance to principles of GAAP or IFRS which present the financial statements in precise manner. The explanations to various items of financial statements are given in notes to accounts. Management discussion and analysis is also useful in determining financial health of the company. It enables the user to come to know about the performance of the company during previous year and the forecasts of management in forthcoming year. This paper makes attempts to analyze the SEC 10-K report of Amazon.com, Inc. It takes into consideration the four budgetary proclamations, to be specific, articulation of wage, accounting report, explanation of money streams and articulation of stockholder's value. The paper also tries to explain the various accounting terms from balance sheet and income statement and explores how the final numbers are coming. Introduction to Amazon.com, Inc. Amazon.com is a United States based multinational company. The primary business of the company is electronic trade and distributed computing. The organization was established by Jeff Bezos on July 5, 1994. The central stations of the company are located at Seattle, Washington. The company started its business as online bookseller, but later on made diversifications in its business and started selling software, video games, CDs, DVDs, audiobook, furniture, food, apparel and jewelry. The services offered by Amazon.com include online shopping, content distribution and web hosting. Jeff Bezos is the Chairman and Chief Operating Officer of the company and Werner Vogels is its Chief Technical Officer. He holds more than 17% of the common stock of the company. The company has completed a number of acquisitions and mergers so far. During 2015 the company became most valuable retailer of United States by market capitalization by surpassing Wal-Mart Stores, Inc. and was the most valuable public company of United States during the third quarter of 2016. The organization has its operations worldwide and it has isolate sites for United States, Mexico, United Kingdom, India, France, Japan, Canada, Brazil, Germany, Australia, Italy, Netherlands and Spain. The subsidiaries of the company are A9.com, Zappos, Amazon Web Services, Junglee.com, Alexa Internet, Internet Movie Database, Digital Photography, etc. The stock of the company is traded at NASDAQ and its ticker symbol is AMZN. The stock of Amazon.com, Inc. is also component of S&P 500, NASDAQ 100 and S&P 100. The slogan of the company is 'Work Hard, Have Fun, Make History'. Income Statement or Consolidated Statement of Operations Income statement is one of the financial statements that is helpful in determining the financial performance of the business over a period of time. This statement enables the users to determine if the company has earned profits or has sustained losses. The income statement can be prepared in two forms: single-step income statement and multi-step income statement. Amazon.com, Inc. prepares multi-step income statement. Total Net Sales It is the dollar value of goods that the company has made during the accounting period. The sale of Amazon.com, Inc. is divided into two parts: Net product sales and Net service sale. Net product sale of the company was $79,268 million during fiscal year 2015 which increased by $15,397 million or 19.42% and stood at $94,665 million. The net service sale of the company was $27,738 million which increased by 13,584 million or 48.97% and stood at 41,322 million. The total bet sale of the company was $135,987 million. Cost of Sales It is the cost that is directly attributable to the production of goods or services. In other words it is the total cost of direct material, direct labor and direct overheads. The cost of goods sold of the company was $71,651 million which increased by $16,614 or 23.19% and stood at $88,265 million. Operating Income It is the income earned by the company from its operations after deducting all of its operating expenses. It does not include the impact of interest and taxes at the time of calculating net earnings and is also called earnings before interest and taxes. The operating income of Amazon.com, Inc. has shown an increasing trend during last three years and has increased from $148 million during the fiscal year 2014 to $4,186 million during fiscal year 2016. Net Income It is the income earned by the company after deducting all of its expenses. It is also called residual income. The net income of Amazon.com, Inc. was $596 million during the fiscal year 2015 which increased by $1,775 million or 297.82% during fiscal year 2016 and stood at $2,371 million. Consolidated Balance Sheets Balance sheet is one of the important documents of financial statements. It summarizes the assets, liabilities and capital and shows the financial position of the company at a particular point of time. It gives a preview of the money related position of the organization. It depends on the condition Assets = Liabilities + Stockholder's Equity. Cash and Cash Equivalents Cash and cash reciprocals are basically made out of US and remote government organization securities, currency advertise reserves, AAA evaluated stores and other venture review securities. The organization records cash and cash equivalents at its fair value. It increased from $15,890 million in the fiscal year 2015 to $19,334 million during the fiscal year 2016 showing an increase of $3,444 million or 21.67%. Property and Equipment These are long term tangible assets of the company and are shown in non-current assets section of the balance sheet. The property and equipment of the Amazon.com, Inc. was $21,938 million which increased by $7,176 million or 32.71% and stood at $29,114 million. Company charges straight-line depreciation on its property and equipment over the estimated useful life of the assets. Inventories The inventories of the company are valued at market value or cost whichever is lower. The company accounts its inventory using first-in, first-out method of inventory valuation. The company also saw an increase in inventories and they increased fro, $10,243 million during the fiscal year 2015 to $11,461 million during the fiscal year 2016 marking an increase of $1,218 million or 11.89%. Accounts Receivables It is the amount that is primarily related to vendors, sellers and customers. The company estimates loss on accounts receivables on the basis of known troubled accounts and historical experience. Accounts receivables were $5,654 million during the fiscal year 2015 which increased to $8,339 million in the fiscal year 2016. The total accounts receivables increased by $2,685 million or 47.49%. The allowance of doubtful debts also increased from $189 million in the fiscal year 2015 to $237 million during the fiscal year 2016. Long-Term Debts These are the debts in form of bonds and notes. The long-term debts of the company were $7,694 million during the fiscal year 2015, which increased by $533 million or 6.93% and stood at $8,227 million during the fiscal year 2016. Conclusion The analysis of financial statements reveals that the company is in good financial health. The revenue and profitability of the company has increased, during the last three years. The balance sheet also shows increase in assets and liabilities of the company. It suggests that the company is in good financial health and will earn high profit in future. References Form 10-K (2016) Amazon.com, Inc. Retrieved from: https://www.sec.gov/Archives/edgar/data/1018724/000101872417000011/amzn20161231x10k.htm#s485471DB1C595CF4AB3B92C717CC90E4