chapter 16

Analyze and compare Amazon.com, Best Buy, and Walmart

The condensed income statements through operating income for Amazon.com, Inc. (AMZN), Best Buy Co., Inc. (BBY), and Walmart Inc. (WMT) for a recent fiscal year follow (in millions):

Line Item Description	Amazon	Best Buy	Walmart
Sales	$280,522	$43,638	$523,964
Cost of sales	(165,536)	(33,590)	(394,605)
Gross profit	$114,986	$10,048	$129,359
Selling, general, and administrative expenses	(100,244)	(7,998)	(108,791)
Operating expenses	(201)	(41)	0
Operating income	$14,541	$2,009	$20,568

Question Content Area

1. Prepare comparative common-sized income statements for each company. Round percentages to one decimal place. If percentages is zero, enter "0". For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)

Comparative Income statements

Line Item Description	Amazon	Best Buy	Walmart
Sales	Sales%	Sales%	Sales%
Cost of sales	Cost of sales%	Cost of sales%	Cost of sales%
Gross profit	Gross profit%	Gross profit%	Gross profit%
Selling, general, and administrative expenses	Selling, general, and administrative expenses%	Selling, general, and administrative expenses%	Selling, general, and administrative expenses%
Operating expenses	Operating expenses%	Operating expenses%	Operating expenses%
Operating income	Operating income%	Operating income%	Operating income%