eBook Calculator Vertical analysis Amazon.com, Inc. is the largest Internet retailer in the United States, Amazon's income statements through income from operations for two recent years are as follows (in millions): Amazon.com, Inc. Operating Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Product sales $70,080 $60.903 Service sales 18.908 13,549 Total sales $88.988 $74,452 Cost of sales $62.252 $54,181 Fulfillment 10,766 8,585 Marketing 4,332 3,133 Technology and content 9,275 6,565 General and administrative 1,552 1,129 Other operating expense (income), net 133 114 Total operating expenses $88,810 $73,707 Income from operations 3178 $745 Required: a. Prepare a vertical analysis of the two operating income statements. Round percentages to one decimal place Amazon.com, Inc. Operating Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Amount Percent Amount Percent Product sales Service sales Total sales Check My Work total operating expenses Income from operations S310 $73,707 $145 1128 Required a. Prepare a vertical analysis of the two operating income statements Round percentages to one decimal place Amazon.com, Inc. Operating Income Statements For the Year Ended December 31 (in millions) Year 2 Year 1 Amount Percent Amount Percent Product sales Service sales Total sales Cost of sales Furament Marketing Technology and content General and administrative Other operating expense income.net Totalcorating expenses Income from certions b. Use the vertical analysis to explain the decrease in income from operations The vertical analysis indicates that the income from operations between the two years. Total expenses as a percent of total sales. This is explained by the funt, marketing technology and content and land administrative expenses. There was able in the cost of However, was not suide to the the other expenses thus, total penses and income from operations a percent of total sales between the two years. Management should investigate the reasons for the expense paying special attention to technology and content Check My Work Previous Next A Word Sum sig for Grade 9 4:16 PM