FinancialAnalysisProject

"Amazon"

Referring to the annualSEC 10Kfinancial statementsand supplemented by your research, respond to the instructions and questions below. Fully explain your answers by detailed explanation or calculations where necessary and appropriate.If ratios are requested, you must show how you calculated the ratio and where you obtained the information you used in the calculation for full credit.)All questions and instructions refer to the most recent yearpubliclyreported, unless otherwise stated.

1.Provide an overview of the company, the type of business it engages in, and any significant recent events affecting the company's operations or financial position.

2.Who are the competitors of this company?Are they a threat to yourcompaniesfinancial performance in the short term (3 years) and/or longer term (greater than 3 years)?

3.Calculate the following:(Note: some might not apply to your company....such as Dividend Yield if your company does not pay dividends)

a.Current Ratio

b.Acid Text Ratio

c.Inventory Turnover

d.Accounts Receivable Turnover

e.Days in Receivable

f.Debt Ratio

g.Times Interest Earned

h.Return on Sales

i.Return on Assets

j.Return on Equity

k.Earnings Per Share

l.Price Earnings

m.Dividend Yield

n.Book Value

4.Perform a horizontal and trend analysis covering the last 3 years.(Note, these are two different techniques that you should not combine in one table.)

5.prepare a "common sized" income statement and balance sheet for the most recently reported fiscal year.

6.Use advanced excel charting features to graph the last 3 years of Earnings Per Share (EPS) and Average Share Price using historical stock price data from yahoo finance.Then use either a linear or moving average excel forecasting technique to project EPS and Share Price for two years into the future.

7.Whatconclusionscan you draw based on the above research and analysis?What are the favorable results and metrics that would motivate you to invest in this company or the "red flags" that would cause you to not invest at thistime.Conclusions must refer to the current stock price and PE ratio and historical stock prices over the last year.If you have a "buy" recommendation for your company, then a suggested share pricerangetopurchase must be provided.