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Vertical analysis Amazon.com, Inc. is the largest Internet retailer in the United States. Amazon's income statements through operating income for two recent years are as
Vertical analysis Amazon.com, Inc. is the largest Internet retailer in the United States. Amazon's income statements through operating income for two recent years are as follows (in millions): Amazon.com, Inc. Operating Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Product sales $141,915 $118,573 Service sales 90,972 59,293 Total sales $232,887 $177,866 Cost of sales $139,156 $111,934 Fulfillment 34,027 25,249 Marketing 13,814 10,069 Technology and content 28,837 22,620 General and administrative 4,336 3,674 Other operating expense, net 296 214 Total operating expenses $220,466 $173,760 Operating income $12,421 $4,106 Required: a. Prepare a vertical analysis of the two operating income statements. Round percentages to one decimal place. Amazon.com, Inc. Operating Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Amount Percent Amount Percent Product sales % % Service sales % % Total sales % $ % % $ % % % % % Cost of sales $ Fulfillment Marketing Technology and content General and administrative Other operating expense, net % % % % % % % $ % Total operating expenses Operating income % %
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