First Amazon Case Assignment

I realize that introducing yourself to reading an annual report takes significant time and effort.

However, I believe your effort will pay off in the long run as you learn to find pertinent information in an

annual report. Additionally, gaining confidence in your ability to locate and organize information from a

voluminous and unfamiliar report will develop an important skill set which your future employers will

value. Your $$return$$ for your time investment in these cases is the acquisition of important new

professional skills including finding and integrating information and learning to $$work in the gray.$$

Please complete your answer for each mini$-$case as in a memo format. One page, single$-$spaced should

be sufficient for most cases. Identify your responses by item point in order using full sentences. Upload

each completed file to Moodle.

Introduction to Financial Accounting Case

This initial case will acquaint you with the structure and some of the components of the most recent

Amazon $10-$K including financial statements and the audit report. It is also an application of of the

concepts in modules $1$ & $2.$

a$)$ What is the date of the most recent fiscal year$-$end?

b$)$ Determine the relative proportion of short$-$ and long$-$term assets $($relative to total assets$).$

c$)$ Determine the relative proportion of liabilities and equity $($relative to total assets$).$

d$)$ Find Amazon$$s audit report. Who are the auditors? What is the auditor$$s opinion regarding

Amazon$$s consolidated financial statements? Are any concerns raised in the report?

e$)$ What is the market value and the book value of Amazon.com? Recall that the shares

outstanding is total shares issued less any treasury shares. Obtain the year$-$end stock price from

an investment website such as Seeking Alpha or Yahoo Finance. Compare the two and

speculate as to why there is a difference. $($Note: It will take some digging to find the year$-$end

stock price rather than just the current stock price. But it is worth the trouble to find an

historical price.$)$