Hi can some please help to my draft for Amazon analysis, please add more details and analysis at least 3 paragraphs make it more strong, analyzing10KforAmazon,follow the checklistI uploaded. grammarcorrection. thank you.

https://www.sec.gov/Archives/edgar/data/1018724/000101872416000172/amzn-20151231x10k.htm

Running head: AMAZON 1 Name: Zhao Jun Meng Course: Accounting 101 Date: 4/21/2017 AMAZON 2 Company background Amazon incorporating was founded on 28th May 1996 and has various products on offer mainly doing E-commerce to reach its clients. It works through segmentation where it has 3 of these segments namely: North America Amazon Web services AWS International segment It does the resale business and acts as a wholesaler but in addition, it produces electronics and sells them too. It has international focused web pages to be able to reach as many clients as possible without actually going to the store. Item Net Sales 2015 100,70 6 2014 88988 Income from Operatio ns 2233 178 Net Income 596 (241) Varianc e Analysis 2015/2014 2014/2013 2013 74452 745 (274) 2013/2012 2012 61093 2011 48077 676 862 (39) 631 2012/2011 N/A AMAZON 3 Net Sales Income From Operatio ns Net Income Amoun t 11718 Percentag e 13.17% Amou nt 14,536 Percentag e 19.5% Amou nt 13359 Percentag e 21% Amou nt 13,016 Percentag e 27% 2155 1,310% (567) -76.1% 69 10% 186 -21.6% 837 837% 33 13% (235) -602.6% -671 -671% From the year 2012 to 2013 Amazon Inc. has experienced losses as seen above on the table. Some of the attributes of this loss were. The company admitted that they experienced shortfalls with foreign exchange that stifled their operations during the period in review. Highly unpredictable despite hedging done to cover them for foreign exchange risk. More funds spent to roll out new customer services attractions including Sunday delivery that wasn't available initially. Rolling out of more products like the Mayday button on kindle fire. However, their efforts from 2012 to 2013 led to an increase in net income by a whopping 837% meaning the products introduced were a strategy for profitability. Excerpt 2. Balance Sheets based on 2 years condensed consolidated balance sheet AMAZON 4 All amounts are in US $ and in \"000\"s 2015 Variance Percentag e 2014 Variance Percentage 65,744 11239 17.1% 54,505 14346 35% 18,161 2486 15.86% 15,675 8242 110.9% Descriptio n Total assets Total Long term liabilities Over the period analyzed there is a recorded increase in total assets of Amazon Inc. This may indicate that there is growth in the company with the company investing in either capital assets or acquisitions to improve the company's market share. This also helps to value the stocks on the securities exchange. Long-term debts: Long-term debts refer to debts that are payable over a long period of time and capitalized on a firm's balance sheet. There is a considerable increase in the figure from 20132015. This would indicate that the company is financing most of its project from long-term loans and that the company has long-term projects to initiate that may bring returns on investment. It could also mean that the firm has invested in either takeovers or capital items to ensure smooth operations. Cash flows AMAZON 5 Excerpts from Amazon Cash flow statement. Provided by Operating Activities Investing activities Financing Activities 2015 11920 Variance 5483 % 83% 2014 6482 2013 5475 (6460) -11525 -27% 5065 4267 (3763) -8195 -84% 4432 (539) There is a considerable increase in Operating activities for 2015 by 83%. This steady rise shows that the companies are sound liquid wise and that it is able to cover its operational costs and have a surplus figure for the year in review. We have negative cash flows in investing and this indicates that the company has put in funds in diversified investments that have a viability of bringing returns in the future. Negative financing activities have also been realized and this could mean that the company has been funding its projects largely from loans and has also been repaying bank interests while also realizing payment of taxes on properties acquired or invested in during the period under review. This means that also in the foreseeable future the company is going to continue paying bank interest for years to come but cash flows will be boosted by returns on investment that the company has financed or invested in. Positive cash flows indicate the ability of the company to be liquid. AMAZON 6 References http://www.reuters.com/finance/stocks/companyProfile?symbol=AMZN.O https://www.forbes.com/sites/maggiemcgrath/2014/01/30/amazon-falling-fast-after-fourthquarter-earnings-miss/#1f4d0ed727d2 10-K. (n.d.). Retrieved from https://www.sec.gov/Archives/edgar/data/1018724/000101872416000172/amzn20151231x10k.htm#s44B4443D0EAA564E146CABB256B0E7A8 GUIDE & CHECKLIST TO PREPARATION OF STUDENT'S DISCUSSION AND ANALYSIS (SD&A) CCNY /Instructor: Liberatore (Checklist) Page 1 OVERVIEW Management's Discussion and Analysis (MD&A) is usually a key component of company financial statements. For this class project we are revising the name MD&A tagline to Student Discussion & Analysis (SD&A). The basic financial statements should accompany the SD&A, usually preceded by SD&A. These key financials would include a current period Balance Sheet, Statement of Operations and Cash Flow and also those of the period under review. So for example, if covering 5 years than comparative financials for the past 5 periods (years) as appropriate. Analytical in nature, SD&A is prepared using student's knowledge and insight and is designed to offer the reader a better opportunity to understand the financial activities of the business under review. There are minimum and maximum requirements for SD&A but they are general rather than specific, in order to encourage business students to focus on the fiscal policies and financial activities that are most relevant to the overall financial performance of the company. SD&A provides financial managers with the opportunity to present both a short-term and long-term analysis of the financial activities being analyzed. Although the analysis provided by the student should be directed to current year results in comparison with the previous year's results, the emphasis should be on the current year but also incorporate the period under review, whether one or more years prior. The SD&A presentation should be based on factual information and incorporate both positive and negative developments. In an effort to make the information meaningful and understandable to constituents of the company, it may be appropriate to use graphs, multiple-color presentations, or other presentation strategies that might provide insight into the analysis. It is the responsibility (and challenge) of those analyzing the financial to consult with and involve the appropriate knowledgeable resources (personnel, data sources, informational websites etc) early on in the process in order to identify key decisions, transactions, events, and conditions that are reflected in the financial statements. These elements are then woven into an objective and easily readable analysis of SD&A. The following sections provide general guidance for preparation of SD&A and are as follows: I. II. III. Preparation of SD&A Comprehensive Variance Analysis Preparation Process Review Process Completion of SD&A Checklist Excerpts from Relevant Accounting Pronouncements (FASB, GASB if deemed appropriate) CCNY /Instructor: Liberatore (Checklist) Page 1 I. PREPARATION OF SD&A Comprehensive Variance Analysis The starting point for the preparation of SD&A is a comprehensive variance analysis, which compares changes between current year and prior year activities (5 Years Prior) and balances as well as ratios and trends from year to year. Prior to student's fieldwork, the student must perform a high level, comprehensive variance analysis: 1) in order to gain comfort with the reasonableness of the account balances and overarching operations, and 2) to be included as a required component of the reporting package. In order to facilitate the identification of significant changes and determining the reasons for such changes, the comprehensive variance analysis must include the following information: 1. Balance Sheet: a. Current year vs. prior year balance under review (5 years prior) - dollar and percent changes b. Balances for the current year and five preceding years - comparison of balances as a percentage of total assets (for assets) and as a percentage of total liabilities and net assets (for liabilities and net assets) for each year. 2. Statement of Revenues, Expenses (Profit & Loss): a. Current year vs. prior year balances - dollar and percent changes b. Current year vs. prior year balances - dollar and percent changes for operating expenses: By account classification (as deemed necessary) By function for each natural classification type c. Balances for the current year and five preceding years - comparison as follows: Components of revenues as a percentage of total operating revenues for each year; Components of operating expenses by classification as a percentage of total expenses for each year; 3. Statement of Cash flow a. Current year vs. prior year balance under review (5 years prior) - dollar and percent changes o Balances for the current year and five preceding years - comparison of balances as a percentage of totals. CCNY /Instructor: Liberatore (Checklist) Page 2 Preparation Process The preparation of SD&A requires significant coordination among students as preparers must perform an analysis to identify and disclose the reasons for changes in the financial statements, analyze relevant global and local economic issues, and discuss future financial plans as detailed in the company's annual report. This fact-based analysis should discuss the positive and negative aspects of the comparison with the prior year. All students are encouraged to use charts, graphs, and tables to enhance the understandability of the information presented. As discussed above, the comprehensive variance analysis is an essential starting point in the SD&A preparation process and identification of significant changes. Significant changes and the reasons for significant changes from the prior year, not simply the amounts or percentages of change, must be included as part of SD&A. Use of other informational resources will be necessary to identify the underlying causes for the changes. Some of these changes may also require the company to consider global and local economic issues. General economic issues may include changes in the national, state, or local economies, changes in market conditions, or changes in employment rates. It is necessary to initiate this analytical investigation early on to identify expected changes in the company' financial condition based on existing decisions and circumstances (i.e. known facts). Some examples include changes in sales, workforce, the company master plan, debt, new construction, and expansion or merger opportunities. II. COMPLETION OF SD&A CHECKLIST The SD&A Checklist on the following two pages and related technical pronouncement references must be used in preparing the SD&A to ensure all required elements are included in the SD&A. CCNY /Instructor: Liberatore (Checklist) Page 3 SD&A Checklist The SD&A section require the following: 1) ___ Use of the SD&A included in this document along with templates for the financial statements as the basis for preparing the SD&A is mandatory. 2) ___ A brief introduction of the company, operations and selection criteria of such along with financial statements including the relationship of the statements to each other. 3) ___ If presenting a five-year analysis: Two years of condensed Balance Sheet (most recent / 5 years past) financial information must be provided in SD&A. The condensed presentation should include information, at a minimum, that supports the analysis of the overall financial position and results of operation. Five years of condensed Profit and Loss financial information must be provided in SD&A. The condensed presentation should include information, at a minimum, that supports the analysis of the overall financial position and results of operation. Five years of condensed Cash flow financial information must be provided in SD&A. The condensed presentation should include information, at a minimum, that supports the analysis of the overall financial position and results of operation. 4) ___ An objective and easily readable analysis of financial activities based on currently known facts, decisions, or conditions, i.e., discussion of Statement of Net Asset variances, other major changes that have occurred etc. Note that the emphasis of the discussion should be analytical and not just computational. 5) ___ For each year presented, a discussion of current year results in comparison with prior year with emphasis on current year, i.e. a discussion of significant variances in the Statement of Revenues, Expenses, and Changes in Net Assets. Note that the emphasis of the discussion should be analytical and not just computational. 6) ___ Focus on the company, with component units included if considered significant to the discussion. 7) ___ For each period presented, presentation of condensed financial information comparing the current year to the prior year. A reference to the component unit's separately issued financial statements when appropriate. 8) ___ For each period presented, an analysis of the overall financial position and results of operations. The analysis should include the reasons for significant CCNY /Instructor: Liberatore (Checklist) Page 4 changes from the prior year, not simply the amounts or percentages of change. In addition, important economic factors that significantly affected operating results for the year should be discussed. 9) ___ For each period presented, a description of significant capital assets and long-term debt activity during the year, including a discussion of commitments made for capital expenditures, changes in credit ratings and debt limitations that may affect the financing of planned facilities or services. 10) ___ A description of currently known facts, decisions, or conditions that are expected to have a significant effect on financial position (net assets) or results of operations (revenues, expenses, and changes in net assets). There can be no forecasting or prediction statements. SD&A must contain only currently known facts. 11) ___ All dollar amounts in the SD&A must be in US $ or equivalent. Reviewed & Submitted: Signature: Date: _____________ Name: Title: Student CCNY /Instructor: Liberatore (Checklist) Page 5 III. Appendix: Additional Information for the SD&A Term Project SD&A should provide an objective and easily readable analysis of the company's financial activities based on currently known facts, decisions, or conditions. The financial managers of the company are responsible and knowledgeable about the transactions, events, and conditions that are reflected in the government's financial report and of the fiscal policies that govern its operations. SD&A provides financial managers with the opportunity to present both a short- and long-term analysis of the company's activities. A brief discussion of the basic financial statements, including the relationships of the statements to each other, and the significant differences in the information they provide. This discussion should include analyses that assist readers in understanding why measurements and results reported in financial statements either reinforce information in the overarching financial statements or provide additional information. Condensed financial information derived from the financial statements comparing the current year to the prior year. Students should present the information needed to support their analysis of financial position and results of operations required in as discussed above, including the following elements, if relevant: (1) Total assets, distinguishing between capital and other assets (2) Total liabilities, distinguishing between long-term liabilities and other liabilities (3) Total net assets, distinguishing among amounts invested in capital assets, net of related debt; (4) Revenues, by major source (5) Total revenues (6) Expenses, at a minimum by operational / unit function (7) Total expenses (8) Capital Excess (deficiency) before investment or extra ordinary items, and transfers (9) Capital Contributions (10) Special and extraordinary items An analysis of the overall financial position and results of operations to assist users in assessing whether financial position has improved or deteriorated as a result of the year's operations. The analysis should address both qualitative and quantitative reasons as reported in the financial statements and should include reasons for significant changes from the prior year, not simply the amounts or percentages of change. In addition, important economic factors, such as changes in the tax or employment bases that significantly affected operating results for the year should be discussed. (If Budgeted Information / Forecasts is analyzed) An analysis of significant variations between original and final budget amounts and between final budget amounts and actual budget results for the company. The analysis CCNY /Instructor: Liberatore (Checklist) Page 6 should include any currently known reasons for those variations that are expected to have a significant effect on future services or liquidity. A description of significant capital assets and long-term debt activity during the year, including a discussion of commitments made for capital expenditures, changes in credit ratings, and debt limitations that may affect the financing of planned facilities or services. A description of currently known facts, decisions, or conditions that are expected to have a significant effect on financial position (net assets) or results of operations (revenues, expenses, and other changes in net assets). CCNY /Instructor: Liberatore (Checklist) Page 7