ScottSACC7035-2

Analyze and compare Amazon.com and Wal-Mart Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Wal-Mart (WMT) is the largest retailer in the United States. Amazon and Wal-Mart compete in similar markets; however, Wal-Mart sells through both traditional retail stores and the Internet, while Amazon sells only through the Internet. Earnings and common stock outstanding information was obtained from recent financial statements for both companies as follows (in millions):     Amazon   Wal-Mart Net income   $2,371   $14,694 Average number of common shares outstanding      474      3,207 a. Determine the earnings per share for each company. Neither company had preferred stock outstanding. Round your answers to two decimal places. Amazon   $ Wal-Mart   $ b. Which company appears more profitable from an earnings-per-share perspective?   c. The market price of Amazon common stock was $750 per share at a time when Wal-Mart’s was $69 per share. How…

Compare Amazon.com to Best Buy Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. We will use Amazon as a continuing company exercise to reinforce the various tools and techniques for analyzing financial statements. We will begin with the ratio of liabilities to stockholders' equity. Ratios can be used to compare companies in the same industry. For Amazon, there are a number of competitors that sell media, electronic, and other merchandise. Best Buy, Inc. (BBY) is one such company. The following total liabilities and stockholders' equity information (in millions) is provided for Amazon and Best Buy for the end of a recent year: Total assets Total liabilities Total stockholders' equity a. Compute the ratio of liabilities to stockholders' equity for each company. Round to two decimal places. Amazon Best Buy $420,549 $19,067 282,304 14,480 138,245 4,587 Liabilities to stockholders' equity ratio Amazon Best Buy b. Which of the following indicates the level of…

Segment Analysis for a Service Company Charles Schwab Corporation is one of the more innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions):     Investor Advisor     Services Services Revenues   $7,321 $2,811 Income from operations   3,176 1,386 Depreciation   186 120 a.  The ____   segment serves the retail customer, you and me. These include brokerage, Internet, and mutual fund services. The ____  segment includes the same services provided for financial institutions, such as banks, mutual fund managers, insurance companies, and pension plan administrators. b.  Indicate whether the following costs are a “Variable Cost” or a “Fixed Cost” in the “Investor Services“. 1. Commissions to brokers _____2. Fees paid to exchanges for executing trades_____ 3. Depreciation on brokerage offices  _______4. Transaction fees incurred by Schwab mutual funds to…

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Charles Schwab Corporation is one of the more innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions):   InvestorServices AdvisorServices Revenues $7,321   $2,811   Income from operations 3,176   1,386   Depreciation 186   120     a.  The   segment serves the retail customer, you and me. These include brokerage, Internet, and mutual fund services. The   segment includes the same services provided for financial institutions, such as banks, mutual fund managers, insurance companies, and pension plan administrators. b.  Indicate whether the following costs are a “Variable Cost” or a “Fixed Cost” in the “Investor Services“. 1. Commissions to brokers  2. Fees paid to exchanges for executing trades  3. Depreciation on brokerage offices  4. Transaction fees incurred by Schwab mutual funds to purchase and sell shares  5. Property taxes on brokerage offices  6.…

Charles Schwab Corporation (SCHW) is one of the more innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions):   InvestorServices AdvisorServices Revenues $5,411   $2,067   Operating income 2,031   962   Depreciation 180   54     a.  The     segment serves the retail customer, you and me. These are the brokerage, Internet, and mutual fund services used by individual Investors. The     segment includes the same services provided for financial institutions, such as banks, mutual fund managers, insurance companies, and pension plan administrators. b.  Indicate whether the following costs are a “Variable Cost” or a “Fixed Cost” in the “Investor Services” segment. 1. Commissions to brokers    2. Fees paid to exchanges for executing trades    3. Depreciation on brokerage offices    4. Transaction fees incurred by Schwab mutual funds to purchase and sell shares…

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Segment analysis for a service company Charles Schwab Corporation (SCHW) is one of the more innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions):   InvestorServices AdvisorServices Revenues $5,411   $2,067   Operating income 2,031   962   Depreciation 180   54     a.  The   segment serves the retail customer, you and me. These are the brokerage, Internet, and mutual fund services used by individual Investors. The   segment includes the same services provided for financial institutions, such as banks, mutual fund managers, insurance companies, and pension plan administrators. b.  Indicate whether the following costs are a “Variable Cost” or a “Fixed Cost” in the “Investor Services” segment. 1. Commissions to brokers  2. Fees paid to exchanges for executing trades  3. Depreciation on brokerage offices  4. Transaction fees incurred by Schwab mutual funds…

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Segment analysis for a service company Charles Schwab Corporation (SCHW) is one of the more innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions):   InvestorServices AdvisorServices Revenues $5,411   $2,067   Operating income 2,031   962   Depreciation 180   54     a.  The Investor Services  segment serves the retail customer, you and me. These are the brokerage, Internet, and mutual fund services used by individual Investors. The Advisor Services  segment includes the same services provided for financial institutions, such as banks, mutual fund managers, insurance companies, and pension plan administrators. b.  Indicate whether the following costs are a “Variable Cost” or a “Fixed Cost” in the “Investor Services” segment. 1. Commissions to brokers Variable Cost 2. Fees paid to exchanges for executing trades Variable Cost 3. Depreciation on brokerage…

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