Use this income statement to describe the following: 1. Amazons cost structure 2. Amazons primary expenses 3. Amazons ability to earn profit. 4. Amazons historical financial performance/year-on-year numbers

AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) Year Ended December 31, 2016 2015 2017 S 79,268 S 27,738 107,006 94,665 $ 41,322 135,987 118,573 59.293 177,866 88,265 71,651 13,410 5,254 111,934 25,249 10,069 17,619 7,233 16,085 2,432 167 22,620 3,674 214 Net product sales Net service sales Total net sales Operating expenses: Cost of sales Fulfillment Marketing Technology and content General and administrative Other operating expense, net Total operating expenses Operating income Interest income Interest expense Other income (expense), net Total non-operating income (expense) Income before income taxes Provision for income taxes Equity-method investment activity, net of tax Net income Basic earnings per share Diluted earnings per share Weighted average shares used in computation of earnings per share: Basic Diluted 12,540 1,747 171 104,773 2,233 50 131,801 4,186 100 (459) (256) (665) 1,568 (484) 90 (294) 3,892 (1,425) (96) 2,371 $ 173,760 4,106 202 (848) 346 (300) 3,806 (769) (4) 3,033 6.32 (950) (22) 596 $ S $ 1.28 $ 5.01 $ 4.90 $ 1.25 $ 6.15 467 474 480 477 484 493 See accompanying notes to consolidated financial statements