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. AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS in millions, except per share data) Year Ended December 31, 2016 2017 94,665 $ 118,573 $ 41,322 59,293 135,987 177,866 2018 141,915 90,972 232,887 Net product sales Net service sales Total net sales Operating expenses: Cost of sales Fulfillment Marketing Technology and content General and administrative Other operating expense, net Total operating expenses Operating income Interest income Interest expense Other income (expense), net Total non-operating income (expense) Income before income taxes Provision for income taxes Equity-method investment activity, net of tax Net income Basic earnings per share Diluted earnings per share Weighted average shares used in computation of earnings per share: Basic Diluted 88,265 17,619 7,233 16,085 2,432 167 131,801 4,186 100 (484) 90 (294) 3,892 (1,425) (96) 2,371 $ 5.01 $ 4.90 $ 111,934 25,249 10,069 22,620 3,674 214 1 73,760 4,106 202 (848) 346 139,156 34,027 13,814 28,837 4,336 296 220,466 12,421 440 (1,417) (183) (1,160) 11,261 (1,197) (300) 3,806 (769) 3,033 6.32 6.15 $ $ $ 10,073 20.68 20.14 480 487 474 484 493 500 See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2017 2018 ASSETS $ 20,522 10,464 16,047 13,164 60,197 48,866 13,350 8,897 131,310 31,750 9,500 17,174 16,677 75,101 61,797 14,548 11,202 162,648 $ $ $ 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, S0.01 par value: Authorized shares - 5,000 Issued shares - 507 and 514 Outstanding shares - 484 and 491 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 34,616 18,170 5,097 57,883 24,743 20,975 38,192 23,663 6,536 68,391 23,495 27,213 (1,837) 21,389 (484) 8,636 27,709 131,310 (1,837) 26,791 (1,035) 19,625 43,549 162,648 $ $ See accompanying notes to consolidated financial statements
