Based on Amazon Inc. 10K in the past 3 years.

Income Statement

1. What is the gross margin for each year? What is the

trend you see with gross margin from 2014 to 2016? (5

points)

Hint: Gross margin is calculated by taking:

(Total Net sales - Cost of Sales)/Net Sales

3. What are some of the conclusions you can draw from

your analysis? For example, do you see any trends from

the nets sales mix (for example how much product sales

vs. service sales each year and the growth pattern). Also,

how is Cost of Sales as a % of Net Sales? Has the

number increased or decreased from 2014 to 2015 and

2015 to 2016? For Amazon, which way is better, an

increase or a decrease in Cost of Sales as a % of Net

Sales?