Income Statement

Amazon.com Inc.	BUS 480
Consolidated Statements of Earnings
($ in millions, except per share amounts)
					Common Size Percentages
Income Statement Currency in (Millions of U.S. Dollars)as of:	December 31, 2008	December 31, 2009	December 31, 2010	December 31, 2011	2008	2009	2010	2011
Revenues	19,166.0	24,509.0	34,204.0	48,077.0
Total Revenues	19,166.0	24,509.0	34,204.0	48,077.0	100.0%	100.0%	100.0%	100.0%
Cost of Goods Sold	14,896.0	18,978.0	26,561.0	37,288.0	77.7%	77.4%	77.7%	77.6%
Gross Profit	4,270.0	5,531.0	7,643.0	10,789.0	22.3%	22.6%	22.3%	22.4%
Selling, General, & Admin
Expenses Total	2,419.0	3,060.0	4,397.0	6,864.0	12.6%
R&D Expenses	1,033.0	1,240.0	1,734.0	2,909.0	5.4%
Other Operating Expenses	29.0	51.0	106.0	154.0	0.2%
Other Operating Expenses, Total	3,481.0	4,351.0	6,237.0	9,927.0	18.2%
Operating Income	789.0	1,180.0	1,406.0	862.0	4.1%
Interest Expenses	-71.0	-34.0	-39.0	-65.0	-0.4%
Interest and Investment Income	83.0	37.0	51.0	61.0	0.4%
Net Interest Expense	12.0	3.0	12.0	-4.0	0.1%
Income (Loss) on Equity Investments	-9.0	-6.0	7.0	-12.0	0.0%
Currency Exchange Gains (Loss)	23.0	26.0	75.0	64.0	0.1%
Other Non- operating Income (Expenses)	22.0	-1.0	3.0	8.0	0.1%
Ebt, Excluding Unusual Items	837.0	1,202.0	1,503.0	918.0	4.4%
Gain (Loss) on Sale of Investments	2.0	4.0	1.0	4.0	0.0%
Gain (Loss) on Sale of Assets	53.0				0.3%
Other Unusal Items, Total		-51.0
Legal Settlements		-51.0
Ebt, Including Unusal Items	892.0	1,155.0	1,504.0	922.0	4.7%
Income Tax Expense	247.0	253.0	352.0	291.0	1.3%
Earnings form Continuing Operations	645.0	902.0	1,152.0	631.0	3.4%
Net Income	645.0	902.0	1,152.0	631.0	3.4%
Net Income to Common Including Extra Items	645.0	902.0	1,152.0	631.0	3.4%
Net Income to Common Excluding Extra Items	645.0	902.0	1,152.0	631.0	3.4%
Report Data Issue

Balance sheet

Amazon.com Inc.	BUS 480
Consolidated Statements of Financial Position
($ in millions, except per share amounts)
Balance Sheet Currency in Millions of U.S. Dollars as of:	December 31, 2008	December 31, 2009	December 31, 2010	December 31, 2011
Assets
Cash and Equivalents	2,769.0	3,444.0	3,777.0	5,269.0
Short-term Investments	958.0	2,922.0	4,985.0	4,307.0
Total Cash and Short-Term Investments	3,727.0	6,366.0	8,762.0	9,576.0
Accounts Receivable	827.0	988.0	1,587.0	2,571.0
Total Receivables	827.0	988.0	1,587.0	2,571.0
Inventory	1,399.0	2,171.0	3,202.0	4,992.0
Deferred Tax Assets, Current	204.0	272.0	196.0	351.0
Total Current Assets	6,157.0	9,797.0	13,747.0	17,490.0
Grosss Property Plant and Equipment	1,078.0	1,517.0	2,769.0	5,143.0
Accumulated Depreciation	-396.0	-418.0	-587.0	-1075.0
Net Property Plant And Equipment	682.0	1,099.0	2,182.0	4,068.0
Goodwill	438.0	1,234.0	1,349.0	1,955.0
Deferred Tax Assets, Long Term	145.0	18.0	22.0	28.0
Other Intangibles	332.0	758.0	795.0	996.0
Other Long Term Assets	560.0	907.0	702.0	741.0
Total Assets	8,314.0	13,813.0	18,797.0	25,278.0
Liabilities and Equity
Accounts Payable	3,594.0	5,605.0	8,051.0	11,145.0
Accrued Expenses	632.0	901.0	1,357.0	2,106.0
Current Portion of Long- Term
Debt/Capital Lease	59.0			395.0
Current Portion of Capital
Lease Obligations				395.0
Unearned Revenue, Current	461.0	858.0	964.0	1,250.0
Total Current Liabilities	4,746.0	7,364.0	10,372.0	14,896.0
Long- Term Debt	409.0	109.0	184.0	255.0
Capital Leases	124.0	143.0	457.0	1,160.0
Other Non- Current Liabilities	363.0	940.0	920.0	1,210.0
Total Liabilities	5,642.0	8,556.0	11,933.0	17,521.0
Common Stock	4.0	5.0	5.0	5.0
Additional Paid in Capital	4,121.0	5,736.0	6,325.0	6,990.0
Retained Earings	-730.0	172.0	1,324.0	1,955.0
Treasuy Stock	-600.0	-600.0	-600.0	-877.0
Comprehensive Income and Other	-123.0	-56.0	-190.0	-316.0
Total Common Equity	2,672.0	5,257.0	6,864.0	7,757.0
Total Equity	2,672.0	5,257.0	6,864.0	7,757.0
Total Liabilites and Equity	8,314.0	13,813.0	18,797.0	25,278.0
Report Data Issue

Financial Ratios

Amazon.com Inc.
Liquidity Ratios	Formula	2008	2009	2010	2011
Current ratio	Current assets/Current liabilities	1.3
Quick ratio	(Current assets - Inventory)/Current liabilities	1.0
Inventory to net working capital	Inventory/(Current assets - Current liabilities)	1.0
Cash ratio	(Cash + Cash equivalents)/Current liabilities	0.6
Profitability Ratios
Net profit margin	Net profit after tax/Net Sales	0.03
Gross profit margin	(Sales - Cost of goods sold)/Net sales	0.22
Return on investment (ROI)	Net profit after tax/Total assets	0.08
Return on equity (ROE)	Net profit after tax/Shareholder's equity	0.24
Earnings per share (EPS)	(Net profit after tax - preferred stock dividends)/Average number of common shares	no data on number of common shares
Activity Ratios
Inventory turnover	Net sales/Inventory	13.7
Asset turnover	Sales/Total assets	2.3
Fixed asset turnover	Sales/Fixed assets	28.1
Average collection period (days)	Accounts receivable/(Sales for year/365)	15.7
Accounts receivable turnover	Annual credit sales/Accounts receivable	No data on credit sales
Leverage Ratios
Debt-to-asset ratio	Total debt/Total assets	0.05
Debt-to-equity ratio	Total debt/Shareholder's equity	0.15
Long-term debt to capital structure	Long-term debt/Shareholder's equity	0.15
Times interest earned	(Profit before tax + Interest charges)/Interest charges	70.8
Fixed-charge coverage	(Profit before tax + Interest charges + Lease charges)/(Interest charges + Lease charges)	no data on lease charges
Other Ratios
Price /earnings ratio	Market price per share/Earnings per share	no data
Divided payout ratio	Annual dividends per share/Annual earnings per share	no data
Dividend yield on common stock	Annual dividends per share/Current market price per share	no data

Pro-Forma Income - No Strategy

Amazon.com Inc.
Pro Forma Income Statement
($ in millions)
Strategic Alternative #1 - No Strategy
Key Assumptions:
Estimated Revenue growth per year (%):	37.7%	average last 5 years
Estimated Cost of Sales ( %):	77.6%	average last 5 years
Estimated Selling Expenses Total (%):	12.6%	average last 5 years
Estimated R&D expenses (%):	5.4%	average last 5 years
Estimated net interest expense (%):	0.1%	average last 5 years
Estimated income on equity investments (%)	0.0%	average last 5 years
estimated income on currency exchange gain (%)	0.1%	average last 5 years
Estimated other non-operating income (%)	0.1%	average last 5 years
Estimated unusual items income (%)	0.0%	average last 5 years
Estimated provision for income tax (%):	1.3%	average last 5 years
Income Statement Currency in (Millions of U.S. Dollars)as of:	2012	2013	2014	2015	2016
Total Revenues	66207.46732	91175.1717	125558.5249	172908.2916	238114.2764
Cost of Goods Sold	51371.58552	70744.48427	97423.15724	134162.7077	184757.2246
Gross Profit	14835.8818	20430.68743	28135.36765	38745.58384	53357.05173
Selling, General, & Admin
Expenses Total	8356.248746
R&D Expenses	3568.418749
Other Operating Expenses
Other Operating Expenses, Total	11924.66749
Operating Income	2911.214306
Interest Expenses
Interest and Investment Income
Net Interest Expense	41.45307356
Income (Loss) on Equity Investments	-31.08980517
Currency Exchange Gains (Loss)	79.45172433
Other Non- operating Income (Expenses)	75.99730153
Ebt, Excluding Unusual Items	2745.402012
Gain (Loss) on unusual items (Sale of Investments, assets, legal settlements)	0.474983135
Ebt, Including Unusal Items	2744.927029
Income Tax Expense	853.2424308
Net Income	1891.684598