1. Financial Statements: Income Statements, from Amazon

Examine the 2018 and 2017 Income Statement. Identify: 1) profits after paying for COGS but before operating and financing expenses; 2) income from operating the business, before paying any financing costs (interest expenses); 3) cost of debt financing; 4) income from operating and financing the business, also the profits left for the shareholders (owners)

ANALYSIS OF THE INCOME STATEMENT FOR AMAZON IN THE YEAR 2017 AND 2018

Profits after paying for cost of goods sold (COGS) but before operating and financing expenses in the year 2017 = $65,566.00

COGS in 2018 = $93,256.00.

Income from operating the business before paying any interest expense;

2017 = $3,954.00

2018 = $12,242.00

Cost of debt financing in the year 2017 = $848.00

2018 = $1,417.00

Income from operating and financing the business including profits for shareholders in 2017 is $2,224.00 while in 2018, it was $9,916.00.

2) Financial Statements: Balance Sheets Amazon below.

Examine the 2018 and 2017 Balance Sheet. Identify Net Working Capital and Stockholders Equity. Compare and contrast.

ANALYSIS OF THE BALANCE SHEETS FOR AMAZON IN THE YEAR 2017 AND 2018

The networking capital for 2017 = $60,197.00 - $57,883.00 = $2,314.00

2018 = $75,101.00 - $68,391.00 = $6,710.00

Stockholders equity for 2017 = $131,310.00 - $103,601.00 = $27,709.00

:2018 = $162,648.00 - $119,099.00 = $43,549.00

3) Financial Statements: Cash Flow Statements From amazon

Examine the 2018 and 2017 Cash Flow Statement. Identify: 1) cash flows from operations; 2) cash flows from investment opportunities; 3) cash flows from financing activities. Compare and contrast.

ANALYSIS OF THE CASH FLOW STATEMENT OF AMAZON FOR THE YEAR 2017 AND 2018

Cash flow from operations in 2017 is $18,365.00

2018 = $30,723.00

Cash flow from investment opportunities in 2017 is ($27,084.00)

2018 = ($12,369.00)

Cash flow from financing activities in 2017 is $9,928.00

2018 = ($7,686.00)

4) Identify any key issues or problems facing each company.

In all likelihood, there will be several different factors at play.

5) Investment Recommendation

Based on analysis in #1 - #4, considering shareholder value, would you recommend this company as an investment? Why or why not?

Total = 100%