Horizontal Analysis
The company is Amazon
(create a horizontal analysis in excel, evaluation of the results, & please upload the annual report as well) *DETAILED INSTRUCTIONS BELOW*
General Instructions: For this case, you will be responsible for setting up an excel document, performing horizontal analysis, and evaluating the results of the Fortune 500 company you selected in module 1 discussion forum. You will have 3 documents to upload (excel for your analysis, word for your evaluation of the results, and the company annual report.) Complete and submit the assignment by 23:59 EST Thursday. Detailed Instructions: In excel, perform horizontal analysis of the balance sheet. Be sure to include the name of the company, your name, and the assignment name as a header. Also, name the document Module 7: Assignment 1 -- Written Case Your Name. In a word document, summarize the balance sheet results of the horizontal analysis. Simply select some of the higher or lower %s to discuss. Focus on items you feel are more relevant and telling of the company operations. For example, you could write one paragraph on each section of the balance sheet i.e. assets, liabilities, equity. 16,410 25.251 9 200 (71 (2.582) 1554) (2849) AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS in millions) Year Der CASH, CASH FOLIVALENTS, AND RESTRICTED CASIE, BEGINNING OF PERIOD 24356 32.173 OPERATING ACTIVITIES Net income 10,073 11.585 Adjustments to reconcile et income to set cash from operating activities Depreciation and mentiration of property and equipment and capitalized content costs, operating lease and other 15.141 21.789 Stock-based compte 5.418 Other operating expene income, et 164 Other expense incent Deferred income taxes 441 Changes in operating assets and liabilities Investories 0314 Accounts receivable, act and other 615 048 Accounts payable 2193 Accrued experies and other Une med revenue 1.711 Net cash provided by twat in operating activities 10.725 514 INVESTING ACTIVITIES Purchases of property and quiet 13:42 Proceeds from property and equipment sales and incentives 2.104 4.172 Acquisition of cash acquired and other 2.155 2.461) Sales and matunities of marketable securities Purchases of marketable securities 07.100 31812 No cash provided by used in) investing activities FINANCING ACTIVITIES Proceeds from shodom det, and other 1,402 Repayments of short-term dobt, and other (1.SI Proceeds from kong-term debe Repayments of long-term debt (155 (1.166) Principal repayments of finances (409) Principal repayments of financing obligations Net cash provided by food in financing activities Foreign currency effect catcash quivalents, and restricted cash 05 70 Net increase (decrease in cu cash equivalent and restricted cash 13 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD 13171 16,4105 See accompanying notes to consolidated financial statements 17,450 5.754 1.245 66064 (140 5,096 2.325) 50.237 (72.419) (59.611) 16.1773 10525 (10,642) (53) 02.104) 618 5967 42.177 3 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) Year Eaded December 2019 141,915 5 160,408 90.972 120.114 232.887 280,522 215.915 170.149 386,064 139,156 34,027 28,837 13.814 233.307 58.317 42,740 32.008 (75) 363.165 Not product sales Net service sales Total net sales Operating expenses : Cost of sales Fulfillment Technology and content Marketing General and administrative Other operating expense (income), net Total operating expenses Operating income Interest income Interest expense Other income (expense). net Total non-operating income (expense) Income before income taxes Provision for income taxes Equity-method investment activity, net of tax Net income Basic camings per share Diluted comings per share Weighted average shares wed in computation of earnings per share 296 220,466 12,421 440 (1.417) (183) (1.160) 11.261 (1.197) . 10073 $ 20.68 $ 20.14 165.536 40.232 35,931 18.878 3.203 201 265.981 14.541 832 (1.600) 203 (565) 13,976 (2.374) (14) 115& 23.46 S 23.01 355 (1.647) 2.371 1.279 24,178 (2.863) 16 21,331 4264 418) $ 5 Basic 500 S10 Diluted 500 504 See accompanying notes to consolidated financial statements 39 2020 21.331 561 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Year Ended Dumber 31 2019 Net income 10,073 5 11,5885 Other comprehensive income (los) Net change in foreign currency translation adjustments: Foreign currency translative adjustments, niet of tax of S6,845). and S(36) 78 Reclassification adjustment for foreign currency translation included in "Other operating expense (income), net," net of tax of So, 29 and 50 (108) Net foreign currency translation adjustments (538) (30) Net change in unrealized gains (losses) on availablo-for-sale debt securities Unrealized gains (losses), net of tax of S0, S(12), and 5(83) (17) 83 Reclassification adjustment for losses gains) included in "Other income (expense), net," net of tax of SO, SO, and S8 (4) Not untcalized gains (losses) on available-for-sale debt securities 79 Total other comprehensive income (less) (547) 49 Comprehensive income 9,5265 11.6375 See accompanying notes to comolidated financial statements 561 273 8 (28) 193 245 06 22.137 40 52 of 87 AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31 2019 2020 36,0925 18,929 20,497 20,816 96.334 72,705 25.141 14,754 16,314 225 245 42,122 42,274 23,795 24,542 132,733 113,114 37,553 15,017 22,778 321,199 ASSETS Current assets Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Operating leases Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable s Accred expenses and other Uncanned revenge Total current liabilities Long-term lease liabilities Long-term debt Other long-term liabilities Commitments and contingencies (Note 7) Stockholders' equity: Preferred stock, So 01 par value: Authorized shares 500 Issued and outstanding shares-none Common stock, 50.01 par value: Authorized shures -- 5,000 Issued shares-521 and 527 Outstanding shares - 498 and 503 Treasury stock, al cost Additional paid-in capital Accumulated other comprehensive income (los) Retained camnings Total stockholders' equity Total liabilities and stockholders' equity See accompanying notes to consolidated financial statements. 47.183 32,439 8,190 87,812 39.791 23,414 12,171 72,539 44,138 9,708 126,385 52.573 31,816 17,017 3 (1.837) 33.658 (986) 31.220 62.060 225.2483 3 (1,897) 42.865 (180) 52,551 93,404 321,199 41 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in millions) 491 Ace Adi Try - C Capildoma in Balance as of January 1, 2018 484 5 5 S (1,837) $ 21.389 S (484) S 8,636 S 27,709 Cumulative effect of change in accounting principles related revenue recognition Income taxes and financial instruments (4) 916 912 Not income 10.073 10.073 Other compechensive income (los) (547) Exercise of common stock options Stock-based compenution and issuance of employee benefit plante 5.402 5.402 Balance as of December 31, 2018 (1.837) 26,791 (1.035) 19.625 Cumulative effect of change in centing principle related to leases 7 Not income 11.588 11.588 Other comprehensive income (ess) Exercise of common stock options 7 Stock-based compensation and stance of employee benefit plan sock 6.867 Balance as of December 31, 2019 498 (1.837) 33,658 (986) 31.230 62.060 Net income 21.331 21,331 Other comprehensive income on 806 506 Exercise of colock options Stock-based compensation and ince of employee benefit plan weck 9.207 9.207 Balance as of December 31, 2020 503s 5 (1.337) S 42.865 (180) S $2.551 593404 See accompanying notes to consolidated finuncial statements. 116 11 . 42 Supplemental Cash Flow Information The following table shows supplemental cash flow informatice in millieres Yearded Dreher 1. 2019 2828 SUPPLEMENT AL CASH FLOW INFORMATION Cash paid for intereson dhe Cash paid for operating lies Cash paid for interest on finances Cash paid for interfacing obligati Cashid for income taxes, net of refund Aucts acquired under operating lases Property and equipment acquired under financeses Property and equipment acquired under bild-to- cament $ $ $ $ $ 854s 875 S 3.361 3815 6475 1945 39 $ 1.184 881 $ $ 7.870 10,615 5 13.723 5 3,641 S 1362 S 916 4475 612 102 1.713 16,217 11.588 2.267 $ Earnings per Share Basic camins per share is calculated using our weighted average outstanding common shares Diluted camins per share is calculated using our weighted average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. In periods when we have a set loss ockwards are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect The following table shows the calculation of diluted states in millions Year Tinted December 31. 2030 Shares used in computation of basic caminys per share 487 194 500 Total ditutive effect of outstanding stock awards 10 10 Shures used in computation of diluted comings per share 500 SO4 S10 Reme Revenue is measured based on the amount of consideration that we expect to receive, reduced by estimates for return allowances, promotional discounts, and rehates. Revenue also excludes any amounts collected on behalf of third parties including sales and indirect taxes. In arrangements where we have multiple performance obligations, the transaction price is allocated to cach performance obligation using the relative stand-alone cling price. We generally determine stand-alone selling prices based on the prices chargod to customers or using expected cost plus a margin A description of our principal revenue generating activities is as follows: Retail sales. We offer consumer products through our cline and physical stores Revenue is recognized when control of the goods is transferred to the customer, which generally occurs upon our delivery to a third-party carrier or, in the case of an Amazon delivery to the customer Third party sellersees. We offer programs that enable sellers to sell their products in our stores, and fulfill orders through us. We are not the seller of record in these transactions. The commissions and any related fulfillment and shipping fees we carn from these arrangements are recognired when the services are rendered, which generally occurs upon delivery of the related products to a third-party carrier or, in the case of an Amaron delivery, to the customer Subscription services Our subscription sales include focs associated with Amazon Prime memberships and access to content including digital video, audiobooks, digital music-books, and other e-AWS subscription services. Prime memberships provide our customers with access to an evolving site of benefits that represent a single stand-ready obligation Subscriptions are paid for at the time of or in advance of delivering the services Revenac from soch arrangements is recognised over the subscription period AWS- Our AWS amingements incluale global sales of computer, storage, database and other services. Revenue is allocated to services using stand-alone selling prices and is primarily recogned when the customer ses these services, based on the quantity of services rendered, such as computer storage capacity delivered on-demand Certain services, including compute and database, are also offered as a fixed quantity over a specific term, for which revenue is recognized ratably Sales commissions we pay in connection with contracts that exceed one year are capitalized and amortized over the contract term. 46
