Question

eBook Calcul Analyze Amazon.com Amazon.com, Inc. (AMZN) is the largest Internet retailer in the United States. Amazon's income statements for two recent years follow: Amazon.com, Inc. Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Revenues: Product sales $94,665 41,322 $79,268 27,738 $107,006 $135,987 Service sales Total revenues Operating expenses: Cost of sales Fulfillment Marketing Technology and content General and administrative Other operating expense (income), net Total operating expenses Operating income Required: $(88,265) $(71,651) (17,619) (13,410) (7,233) (5,254) (16,085) (12,540) (2,432) (1,747) (167) (171) $(131,801) $(104,773) $4,186 $2,233 a. Prepare a horizontal analysis of the income statements. Round percentages to one decimal place, Amazon.com, Inc. Income Statements

Answer 1

4) Amazon.com, Inc Horizontal Analysis (in millions) Increase/(Decrease) Year 2 Year 1 Amount Percent Revenues: Product Sales $ 94,665 $ 79,268 $ 15,397 19.4% Service sales $ 41,322 $ 27,738 $ 13,584 49.0% Total revenue $135,987 $107,006 $28,981 68.4% Operating expenses Cost of sales $ 88,265 $ 71,651 $ 16,614 23.2% Fulfillment $ 17,619 $ 13,410 $ 4,209 31.4% Marketing $ 7.233 $ 5.254 $ 1,979 37.7% Technology and content $ 16,085 $ 12,540 $ 3,545 28.3% General and administrative $ 2.432 $ 1.747 $ 685 39.2% Other operating expense (income), net $ 167 $ 171 $ (4) -2.3% Total Operating expense $131,801 $104,773 $27,028 25.8% Operating Income S 4,186 S 2,233S 1,953 87.5% b) Increases Growth Increases 1) 2) 3 4) 5) 6) less Increase growth