Use the sample templates in Tables 4-1, 4-2, and 4-3 as a reference to recast the financial statements for Amazon.com below.

Helpful Notes: (a) fulfillment costs these are viewed as cost of sales for most retailers; (b) stock option costs these are probably for senior management and hence should probably be classified as SG&A; and (c) in the cash flow statement gains and losses on currency translations (shown at the end of the statement are shown as operating factors that imply that cash from operations in the standardized format does not equate to that reported by the firm.

See Week 4 Discussion forum for example.

Income Statement

Classifications		2002	2001	2000
Sales	Net sales	$3,932,936	$3,122,433	$2,761,983
Cost of Sales	Cost of sales	2,940,318	2,323,875	2,106,206
	Gross profit	992,618	798,558	655,777
	Operating expenses:
Cost of Sales	Fulfillment	392,467	374,250	414,509
SG&A	Marketing	125,383	138,283	179,980
SG&A	Technology and content	215,617	241,165	269,326
SG&A	General and administrative	79,049	89,862	108,962
SG&A	Stock-based compensation	68,927	4,637	24,797
Other Operating Expense	Amortization of goodwill and other intangibles	5,478	181,033	321,772
Other Operating Expense	Restructuring-related and other	41,573	181,585	200,311
	Total operating expenses	$928,494	$1,210,815	$1,519,657
	Income (loss) from operations	64,124	-412,257	-863,880
Interest Income	Interest income	23,687	29,103	40,821
Interest Expense	Interest expense	-142,925	-139,232	-130,921
Other Income	Other income (expense), net	5,623	-1,900	-10,058
Other Income	Other gains (losses), net	-96,273	-2,141	-142,639
	Total non-operating expenses, net	($209,888)	($114,170)	($242,797)
	Loss before equity in losses of equity-method investees	-145,764	-526,427	-1,106,677
Other Income	Equity in losses of equity-method investees, net	-4,169	-30,327	-304,596
	Loss before change in accounting principle	($149,933)	($556,754)	($1,411,273)
Unusual Loss (after tax)	Cumulative effect of change in accounting principle	801	-10,523
Net Income	Net loss	($149,132)	($567,277)	($1,411,273)

Balance Sheet

Classifications	Year Beginning January 1, ($000's)	2003	2002
	Current assets:
Cash and Marketable Securities	Cash and cash equivalents	$738,254	$540,282
Cash and Marketable Securities	Marketable securities	562,715	456,303
Inventory	Inventories	202,425	143,722
Accounts Receivable	Accounts receivable, net & other current assets	112,282	67,613
	Total current assets	$1,615,676	$1,207,920
Long-Term Tangible Assets	Fixed assets, net	239,398	271,751
Long-Term Intangible Assets	Goodwill, net	70,811	45,367
Long-Term Intangible Assets	Other intangibles, net	3,460	34,382
Other Long-Term Assets	Other equity investments	15,442	28,359
Other Long-Term Assets	Other assets	45,662	49,768
Total Assets	Total assets	$1,990,449	$1,637,547
	LIABILITIES AND STOCKHOLDERS' DEFICIT
	Current liabilities:
Accounts Payable	Accounts payable	618,128	444,748
Other Current Liabilities	Accrued expenses and other current liabilities	314,935	305,064
Other Current Liabilities	Unearned revenue	47,916	87,978
Other Current Liabilities	Interest payable	71,661	68,632
Short-Term Debt	Current portion of long-term debt and other	13,318	14,992
	Total current liabilities	$1,065,958	$921,414
Long-Term Debt	Long-term debt and other	2,277,305	2,156,133
	Shareholders deficit
	Common stock, $0.01 par value: Authorized shares 5,000,000 Issued and outstanding shares -- 387,906 and 373,218 shares, respectively	3,879	3,732
	Additional paid-in capital	$1,649,946	$1,462,769
	Deferred stock-based compensation	-6,591	-9,853
	Accumulated other comprehensive income (loss)	9,662	-36,070
	Accumulated deficit	-3,009,710	-2,860,578
Common Shareholders' Equity	Total stockholders' deficit	($1,352,814)	($1,440,000)
	Total liabilities and stockholders' deficit	1,990,449	1,637,547

Cash Flow Statement Standardization

Classifications	Year Ended December 31, ($000's)	2002	2001	2000
	OPERATING ACTIVITIES:
Net Income	Net loss	($149,132)	($567,277)	($1,411,273)
	Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Long-term operating accruals-depreciation and amortization	Depreciation of fixed assets and other amortization	82,274	84,709	84,460
Long-term operating accruals-other	Stock-based compensation	68,927	4,637	24,797
Long-term operating accruals-other	Equity in losses of equity-method investees	4,169	30,327	304,596
Long-term operating accruals-depreciation and amortization	Amortization of goodwill and other intangibles	5,478	181,033	321,772
Long-term operating accruals-other	Non-cash restructuring-related and other	3,470	73,293	200,311
Non-operating losses (gains)	Gain on sale of marketable securities, net	-5,700	-1,335	-280
Non-operating losses (gains)	Other losses (gains), net	96,273	2,141	142,639
Long-term operating accruals-other	Non-cash interest expense and other	29,586	26,629	24,766
Non-operating losses (gains)	Cumulative effect of change in accounting principle	-801	10,523
	Changes in operating assets and liabilities:
Net investment/liquidation of op. wc	Inventories	-51,303	30,628	46,083
Net investment/liquidation of op. wc	Accounts receivable, net and other cur. assets	-32,948	20,732	-8,585
Net investment/liquidation of op. wc	Accounts payable	156,542	-44,438	22,357
Net investment/liquidation of op. wc	Accrued expenses and other current liabilities	4,491	50,031	93,967
Net investment/liquidation of op. wc	Unearned revenue	95,404	114,738	97,818
Net investment/liquidation of op. wc	Amortization of previously unearned revenue	-135,466	-135,808	-108,211
Net investment/liquidation of op. wc	Interest payable	3,027	-345	34,341
	Net cash provided by (used in) operating activities	$174,291	($119,782)	($130,442)

Classifications	Year Ended December 31, ($000's)	2002	2001	2000
	INVESTING ACTIVITIES:
	Sales/maturities of marketable securities and investments	553,289	370,377	545,724
	Purchases of marketable securities	-635,810	-567,152	-184,455
	Purchases of fixed assets, including internal-use software	-39,163	-50,321	-134,758
	Investments (including in equity-method investees)		-6,198	-62,533
Net (investment in) or liquidation of operating long-term assets	Net cash provided by (used in) investing activities	($121,684)	($253,294)	$163,978
	FINANCING ACTIVITIES:
Net stock (repurchase) or issuance	Proceeds from exercise of stock options and other	121,689	16,625	44,697
Net stock (repurchase) or issuance	Proceeds from issuance of common stock, net of issue costs		99,831
Net debt (repayment) or issuance	Proceeds from long-term debt and other		10,000	681,499
Net debt (repayment) or issuance	Repayment of capital lease obligations and other	-14,795	-19,575	-16,927
Net debt (repayment) or issuance	Financing costs			-16,122
	Net cash provided by financing activities	$106,894	$106,881	$693,147
Non-operating losses (gains)	Effect of exchange-rate changes on cash and cash equivalents	38,471	-15,958	-37,557
	Net increase (decrease) in cash and cash equivalents	$197,972	($282,153)	$689,126