Selected Method - Income Approach Guidance: Explain the mechanics of the calculation below. Discuss your selection for the cells in yellow - annual growth rate, and percentage of revenue for Gross Profit and Operating/ Expenses. Prospective Analysis Amazon.com, Inc. (AMZN) Projected Income Statement (in millions) 2021 2022 2023 2024 2025 Terminal Revenue Growth $395,715,600 $405,608,500 2.5% 2.5% 2.5% $415,748,700 $ 426,142,400 2.5% $436,796,000 $447,715,900 2.5% 2.5% Gross profit Percentage of revenue 27,700,092 7.0% 28,392,595 7.0% 29,102,409 7.0% 29,829,968 7.0% 30,575,720 7.0% 31,340,113 7.0% Operating expenses 19,785,780 20,280,425 20,787,435 21,307,120 Percentage of revenue 5.0% 5.0% 5.0% 5.0% 21,839,800 5.0% 22,385,795 5.0% Other income (expense) Interest income (expense) Other Percentage of revenue Net income 0.0% 0.0% 0.0% $ 7,914,312 $ 8,112,170 $ 8,314,974 0.0% 0.0% 0.0% $ 8,522,848 $ 8,735,920 $ 8,954,318