Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLZ HELP Amazons income statement, balance sheet, and cash flow statement are provided below for the years 2014, 2015, 2016 in Exhibit 1, 2 and

PLZ HELP

Amazons income statement, balance sheet, and cash flow statement are provided below for the years 2014, 2015, 2016 in Exhibit 1, 2 and 3 respectively. You are a financial analyst in Wall Street, and your manager has asked you to do the following;

Part a) Calculate financial ratios based on the financial statements of Amazon, and critically evaluate the trends, providing reasons as to why the ratios are changing. Secondly, Based on the ratios you calculated, explain how your calculated ratios could be improved, and how do they compare to competitor businesses?

Part B) Model the income statement forward for the years 2017 and 2018. In your model, state the assumptions you have made, and provide graphs to show your projections. Finally, explain how you could improve your model

Exhibit 1. Amazon Income statement 2014-2016 ($ Millions)

image text in transcribed

Exhibit 2. Amazon Balance statement 2014-2016 ($ Millions)

image text in transcribed

Exhibit 3: Cash flow statement

image text in transcribed

image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

=+ (c) Show that a ,, converges to some a > 0.

Answered: 1 week ago

Question

explain why i t i s not valid t o evaluate 2 2 + 3 / 7 7

Answered: 1 week ago

Question

Identify the cause of a performance problem. page 363

Answered: 1 week ago