eBook Calcul Analyze Amazon.com Amazon.com, Inc. (AMZN) is the largest Internet retailer in the United States. Amazon's income statements for two recent years follow: Amazon.com, Inc. Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Revenues: Product sales $94,665 41,322 $79,268 27,738 $107,006 $135,987 Service sales Total revenues Operating expenses: Cost of sales Fulfillment Marketing Technology and content General and administrative Other operating expense (income), net Total operating expenses Operating income Required: $(88,265) $(71,651) (17,619) (13,410) (7,233) (5,254) (16,085) (12,540) (2,432) (1,747) (167) (171) $(131,801) $(104,773) $4,186 $2,233 a. Prepare a horizontal analysis of the income statements. Round percentages to one decimal place, Amazon.com, Inc. Income Statements Required: a. Prepare a horizontal analysis of the income statements. Round percentages to one decimal place. Amazon.com, Inc. Income Statements For the Years Ended December 31 (in millions) Year 2 Increase/(Decrease) Amount Percent Year 1 Revenues: Service sales Product sales $94,665 $79,268 % 41,322 27,738 % Total revenues $135,987 $107,006 % Operating expenses: Cost of sales $(88,265) $(71,651) $ % Fulfillment (17,619) (13,410) % Marketing (7,233) (5,254) Technology and content (16,085) (12,540) % General and administrative (2,432) (1,747) % % Other operating expense (income), net (171) (167) Total operating expenses $(131,801) $(104,773) 96 $4,186 $2,233 Operating income in service sales. Service sales are between the two years, with a strong b. The horizontal analysis shows that total revenues than revani Tha revenues earned from Amazon's Web hosting, Web design, and order fulfillment services provided for other businesses. This part of Amazon apparently Thtal onerating evnences have grown between the two wear indication that expenses are now Previous as ended December 31 (in millions) Year 2 Year 1 Increase/(Decrease) Amount Percent Revenues: Product sales Service sales % 4 $94,665 $79,268 41,322 27,738 Total revenues % $135,987 $107,006 Operating expenses: Cost of sales $(88,265) $(71,651) $ Fulfillment (17,619) (13,410) Marketing (7,233) (5,254) Technology and content (16,085) (12,540) General and administrative (2,432) (1,747) Other operating expense (income), net (167) (171) % Total operating expenses $(131,801) $(104,773) 96 $4,186 $2,233 Operating income in service sales Service sales are between the two years, with a strong b. The horizontal analysis shows that total revenues than revenues. The revenues earned from Amazon's Web hosting, Web design, and order fulfillment services provided for other businesses. This part of Amazon apparently Total operating expenses have grown between the two years, indicating that expenses are growing in operating Income between the to expense growth appears to be occurring across all the major expense categories. The net result is a significant years. Thus, Amazon demonstrates significant Previous Next %
