Complete a Vertical Analysis of Amazon.Com Incs Consolidated Balance Sheet and Consolidated Statement of Operations for both 2017 and 2018. Provide an analysis of what your vertical analysis reveals about Amazon.Com Inc.s financial position and profitability.

AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2017 2016 $ 19,334 6,647 11,461 8,339 20,522 10,464 16,047 13,164 60,197 48,866 13,350 45,781 29,114 3,784 4,723 83,402 8,897 $ 131,310 ASSETS Current assets: Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other Unearned revenue Total current liabilities Long-term debt Other long-term liabilities Commitments and contingencies (Note 7) Stockholders' equity: 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 - 500 and 507 Outstanding shares - 477 and 484 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 25,309 S 13,739 4,768 43,816 7,694 12,607 34,616 18,170 5,097 57,883 24,743 20,975 (1,837) 17,186 (985) 4,916 19,285 83,402 (1,837) 21,389 (484) 8,636 27,709 131,310 $ See accompanying notes to consolidated financial statements. STEP #3: (15 pts.) Complete a "Vertical Analysis" of Amazon.com Inc's Consolidated Balance Sheet and Consolidated Statement of Operations for both 2017 and 2018. Provide an analysis of what your vertical analysis reveals about Amazon.com Inc.'s financial position and profitability. EXAMPLE (See pgs. 503 - 504 in your textbook) APPLE INC Common Sire Comparative Year End Balance Sheets $ millions Current Y Common-Size Percents Current Y Prior Yr Prior Y 5.4% 14.4 $ 20,289 53,892 17,874 4,855 17.799 13.936 128,645 194,714 33,783 5.717 2.298 10,162 $375,319 $20.484 46 571 15.754 2.132 13.505 B.283 106,869 170.430 27.010 5.414 3,206 8,757 $321,686 34.3 51.9 9.0 1.5 0.6 2.7 100.0% Assets Cash and cash equivalents Short-term marketable securities Accounts receivable, net.... Inventories... Vendor non-trade receivables Other current assets...... Total current assets. Long-term marketable securities Property, plant and equipment, net Goodwill. Acquired intangible assets, net.. Other non-current assets... Total assets... Uabilities Accounts payable... Accrued expenses... Deferred revenue... Commercial paper Current portion of long-term debt. Total current liabilities Deferred revenue-noncurrent Long term debl.. Other non-current liabilties Total abilities Stockholders' Equity Common stock Retained earnings ... Accumulated other comprehensive income.... Total stockholders' equity Total liabilities and stockholders' equity.............. 13.1% 2.0 $ 49,049 25,744 7,548 11,977 6.496 100,814 2.836 97,207 40.415 241,272 $ 37.294 22.027 8,080 8.105 3.500 79,006 2.930 75.427 36,074 193,437 26.9 08 25.9 10.8 64.3 262 35,867 98,330 (150) 134,047 $375,319 31.251 96,364 634 128249 $321,686 0.0 35.7 100.0% "Percents are rounded to bentles and thus mayo rectly sum totals and subtotal APPLE INC. Common-Size Comparative Income Statements Common-Size Percents Current Y Prior Y $ millions Current Prior Y 100.0% 61.5 100.0% 60.9 39.1 Net sales ....... Cost of sales ........................ Gross margin........................ Research and development............... Selling, general and administrative. Total operating expenses. Operating income..... $229,234 141,048 88,186 11,581 15,261 26,842 61,344 4.7 $215,639 131,376 84,263 10,045 14,194 24,239 60,024 1,348 61,372 15,685 $ 45,687 Other income, net........................ 2,745 Income before provision for income taxes ...... Provision for income taxes... Net income.... 64,089 15,738 $ 48,351 *Percents are rounded to tenths and thus may not exactly sum to totals and subtotals