Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help converting Amazon's Income statement for FY2017 into a vertical analysis where net sales is 100%. I'm trying to do a direct comparison
I need help converting Amazon's Income statement for FY2017 into a vertical analysis where net sales is 100%. I'm trying to do a direct comparison with Target's income statement for FY2017. I pulled both from Yahoo Finance. I'm using Target's categories on the income statement, and trying to convert Amazon's into these categories. Please help!
Amazon's Income Statement
Net product sales | $ | 94,665 | |
Net service sales |
| 59,293 | |
Total net sales |
| 177,866 | |
Operating expenses: |
| ||
Cost of sales |
| 111,934 | |
Fulfillment |
| 25,249 | |
Marketing |
| 10,069 | |
Technology and content |
| 22,620 | |
General and administrative |
| 3,674 | |
Other operating expense, net |
| 214 | |
Total operating expenses |
| 173,760 | |
Operating income |
| 4,106 | |
Interest income |
| 202 | |
Interest expense | ) |
| (848 |
Other income (expense), net |
| 346 | |
Total non-operating income (expense) | ) |
| (300 |
Income before income taxes |
| 3,806 | |
Provision for income taxes | ) |
| (769 |
Equity-method investment activity, net of tax | ) |
| (4 |
Net income | $ | 2,371 | |
Basic earnings per share | $ | 5.01 | |
Diluted earnings per share | $ | 4.9 | |
Weighted-average shares used in computation of earnings per share: |
| ||
Basic |
| 480 | |
Diluted |
| 493 |
Target's Income Statement (USE THESE CATEGORIES)
All numbers in thousands | |
Revenue | 1/28/17 |
Total Revenue | 69,495,000 |
Cost of Revenue | 48,872,000 |
Gross Profit | 20,623,000 |
Operating Expenses | |
Research Development | - |
Selling General and Administrative | 13,356,000 |
Non Recurring | - |
Others | 2,298,000 |
Total Operating Expenses | - |
Operating Income or Loss | 4,969,000 |
Income from Continuing Operations | |
Total Other Income/Expenses Net | - |
Earnings Before Interest and Taxes | 4,969,000 |
Interest Expense | 1,004,000 |
Income Before Tax | 3,965,000 |
Income Tax Expense | 1,296,000 |
Minority Interest | - |
Net Income From Continuing Ops | 2,669,000 |
Non-recurring Events | |
Discontinued Operations | 68,000 |
Extraordinary Items | - |
Effect Of Accounting Changes | - |
Other Items | - |
Net Income | |
Net Income | 2,737,000 |
Preferred Stock And Other Adjustments | - |
Net Income Applicable To Common Shares | 2,737,000 |
AMAZON's Income Statement - Reformatted (in millions)
Net product sales | 94,665 | ||
Net service sales | 59,293 | ||
Total net sales | 177,866 | ||
Oprating expenses | |||
Cost of sales | 111,934 | ||
Fulfillment | 25,249 | ||
Marketing | 10,069 | ||
Technology and content | 22,620 | ||
General & administrative | 3,674 | ||
Other operating expense, net | 214 | ||
Total operating expenses | 173,760 | ||
Operating income | 4,106 | ||
Interest income | 202 | ||
Interest expense | -848 | ||
Other income (expense), net | 346 | ||
Total non-operating income (expense) | -300 | ||
Income before income taxes | 3,806 | ||
Provision for income taxes | -769 | ||
Equity-method investment activity, net of tax | -4 | ||
Net income | 2,371 | ||
Basic Earnings per share | 5 | ||
Diluted earnings per share | 5 | ||
Weighted-average shares used in computation of earnings per share: | |||
Basic | 480 | ||
Diluted | 493 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started