eBook Calculator Print Item Analyze Amazon.com Amazon.com, Inc. (AMZN) is the largest Internet retailer in the United States. Amazon's in Amazon.com, Inc. Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Revenues: Product sales Service sales $94,665 41,322 $135,987 $79,268 27,738 $107,006 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 p Amazon.com, Inc. Income Statements For the Years Ended December 31 Check My Work le eBook Calculator Print Item Income Statements For the Years Ended December 31 (in millions) Increase/(Decrease) Amount Percent Year 2 Year 1 Revenues: Product sales $94,665 $79,268 % Service sales 41,322 27,738 % Total revenues $135,987 $107,006 % Operating expenses: Cost of sales Fulfillment % Marketing Technology and content $(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 General and administrative Other operating expense (income), net Total operating expenses 96 % Operating income b. The horizontal analysis shows that total revenues between the two years, with a strong in service sales. Service sales are 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 than revenues. The expense growth appears to be occurring across all the major expense categories. The net result is a significant in operating income between the tw years. Thus, Amazon demonstrates significant Previous Next Check My Work