Access the 2020 financial statements of Facebook here (Links to an external site.) (Links to an external site.) and the 2020 financial statements of Amazon here. (Links to an external site.) For Facebook, scroll to Page 83 (Income Statement) and Page 82 (Balance Sheet) and use them to complete the table below. For Amazon, scroll to Page 39 (Income Statement) and Page 41 (Balance Sheet) and use them to complete the table below. Note: You will NOT find 2018 numbers for current assets and liabilities, so don't bother about 2018 (see where it says NA on the tables below) FACEBOOK, INC. CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) Year Ended December 31, 2020 2019 2018 Revenue $ 85,965 $ 70,697 $ 55,838 Costs and expenses: Cost of revenue 16,692 12,770 9,355 Research and development 18,447 13,600 10,273 Marketing and sales 11,591 9,876 7,846 General and administrative 6,564 10,465 3,451 Total costs and expenses 53,294 46,711 30,925 Income from operations 32,671 23,986 24,913 Interest and other income, net 509 826 448 Income before provision for income taxes 33,180 24,812 25,361 Provision for income taxes 4,034 6,327 3,249 Net income 29,146 18,485 22,112 Less: Net income attributable to participating securities — — (1) Net income attributable to Class A and Class B common stockholders $ 29,146 $ 18,485 $ 22,111 Earnings per share attributable to Class A and Class B common stockholders: Basic $ 10.22 $ 6.48 $ 7.65 Diluted $ 10.09 $ 6.43 $ 7.57 Weighted-average shares used to compute earnings per share attributable to Class A and Class B common stockholders: Basic 2,851 2,854 2,890 Diluted 2,888 2,876 2,921 Share-based compensation expense included in costs and expenses: Cost of revenue $ 447 $ 377 $ 284 Research and development 4,918 3,488 3,022 Marketing and sales 691 569 511 General and administrative 480 402 335 Total share-based compensation expense $ 6,536 $ 4,836 $ 4,152 See Accompanying Notes to Consolidated Financial Statements. 83 Table of Contents FACEBOOK, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Year Ended December 31, 2020 2019 2018 Net income $ 29,146 $ 18,485 $ 22,112 Other comprehensive income (loss): Change in foreign currency translation adjustment, net of tax 1,056 (151) (450) Change in unrealized gain (loss) on available-for-sale investments and other, net of tax 360 422 (52) Comprehensive income $ 30,562 $ 18,756 $21,610 In $ Millions FACEBOOK AMAZON 2020 2019 2018 2020 2019 2018 Net Income Total Revenue Current Assets NA NA Current Liability NA NA Once you complete the table, compute the two ratios below (formulas are given below) FACEBOOK AMAZON 2020 2019 2018 2020 2019 2018 Profit Margin Current Ratio NA NA Profit Margin = Net Income / Sales expressed as a percentage to two decimal places. For example 12.56% Current Ratio is current assets / current liabilities expressed to two decimal places. For example, 1.98 Which company is more profitable per the profit margin ratio? Is the profit margin increasing or decreasing for this company? Which company has a better ability to pay off its short-term obligations as per the current ratio? Is the ratio steady, increasing, or decreasing for this company
Access the 2020 financial statements of Facebook here (Links to an external site.) (Links to an external site.) and the 2020 financial statements of Amazon here. (Links to an external site.) For Facebook, scroll to Page 83 (Income Statement) and Page 82 (
FACEBOOK, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
Year Ended December 31,
2020 2019 2018
Revenue $ 85,965 $ 70,697 $ 55,838
Costs and expenses:
Cost of revenue 16,692 12,770 9,355
Research and development 18,447 13,600 10,273
Marketing and sales 11,591 9,876 7,846
General and administrative 6,564 10,465 3,451
Total costs and expenses 53,294 46,711 30,925
Income from operations 32,671 23,986 24,913
Interest and other income, net 509 826 448
Income before provision for income taxes 33,180 24,812 25,361
Provision for income taxes 4,034 6,327 3,249
Net income 29,146 18,485 22,112
Less: Net income attributable to participating securities — — (1)
Net income attributable to Class A and Class B common stockholders $ 29,146 $ 18,485 $ 22,111
Earnings per share attributable to Class A and Class B common stockholders:
Basic $ 10.22 $ 6.48 $ 7.65
Diluted $ 10.09 $ 6.43 $ 7.57
Weighted-average shares used to compute earnings per share attributable to Class A and
Class B common stockholders:
Basic 2,851 2,854 2,890
Diluted 2,888 2,876 2,921
Share-based compensation expense included in costs and expenses:
Cost of revenue $ 447 $ 377 $ 284
Research and development 4,918 3,488 3,022
Marketing and sales 691 569 511
General and administrative 480 402 335
Total share-based compensation expense $ 6,536 $ 4,836 $ 4,152
See Accompanying Notes to Consolidated Financial Statements.
83
Table of Contents
FACEBOOK, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
Year Ended December 31,
2020 2019 2018
Net income $ 29,146 $ 18,485 $ 22,112
Other comprehensive income (loss):
Change in foreign currency translation adjustment, net of tax 1,056 (151) (450)
Change in unrealized gain (loss) on available-for-sale investments and other, net of tax 360 422 (52)
Comprehensive income $ 30,562 $ 18,756 $21,610
In $ Millions
| AMAZON | ||||||
| 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |
| Net Income | ||||||
| Total Revenue | ||||||
| Current Assets | NA | NA | ||||
| Current Liability | NA | NA |
Once you complete the table, compute the two ratios below (formulas are given below)
| AMAZON | ||||||
| 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |
| Profit Margin | ||||||
| NA | NA |
Profit Margin = Net Income / Sales expressed as a percentage to two decimal places. For example 12.56%
Current Ratio is current assets / current liabilities expressed to two decimal places. For example, 1.98
Which company is more profitable per the profit margin ratio? Is the profit margin increasing or decreasing for this company?
Which company has a better ability to pay off its short-term obligations as per the current ratio? Is the ratio steady, increasing, or decreasing for this company?
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