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EX 3-28 Vertical Analysis OBJ. 7 Amazon.com, Inc. is the largest Internet retailer in the United States. Amazon's income statements through operating income for two
EX 3-28 Vertical Analysis OBJ. 7 Amazon.com, Inc. is the largest Internet retailer in the United States. Amazon's income statements through operating income for two recent years are as follows (in millions): Amazon.com, Inc. Operating Income Statements For the Years Ended December 31 (in millions) Product sales. Service sales.. Total sales Cost of sales. Fulfillment..... Marketing Technology and content. General and administrative Other operating expense, net Total operating expenses.... Operating income Year 2 $141,915 90,972 $232,887 $139,156 34,027 13,814 28,837 4,336 296 $220,466 $ 12,421 Year 1 $118,573 59,293 $177,866 $111,934 25,249 10,069 22,620 3,674 214 $173,760 $ 4,106 a. Prepare a vertical analysis of the two operating income statements. Round percentages to one decimal place. b. Use the vertical analysis to explain the decrease in operating income
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