Amazon.com, Inc. is preparing its financial statements for the fiscal year ending December 31, 2023. The company's preliminary income statement shows net sales of $514 billion, cost of sales of $320 billion, operating expenses of $160 billion, and other income of $2 billion. Amazon's effective tax rate for the year is 21%. The company had 10.2 billion weighted average shares outstanding during the year and 10.3 billion shares outstanding at year-end. Calculate Amazon's basic earnings per share (EPS) for the fiscal year 2023, and determine if it has improved from the previous year when the basic EPS was $1.25. The Walt Disney Company is evaluating its financial performance for the fiscal year ending September 30, 2023. The company reported total revenues of $82.7 billion, cost of revenues of $52.3 billion, and operating expenses of $21.5 billion. Disney's interest expense for the year was $1.2 billion, and its effective tax rate was 25%. The company had 1.83 billion weighted average shares outstanding during the year. Disney is considering a new expansion project that would require $5 billion in capital expenditures. To assess its ability to fund this project internally, Disney wants to calculate its free cash flow for the fiscal year 2023, assuming depreciation and amortization expenses were $5.2 billion and the change in working capital was a cash inflow of $800 million.
Amazon.com, Inc. is preparing its financial statements for the fiscal year ending December 31, 2023. The company's preliminary income statement shows net sales of $514 billion, cost of sales of $320 billion, operating expenses of $160 billion, and other income of $2 billion. Amazon's effective tax rate for the year is 21%. The company had 10.2 billion weighted average shares outstanding during the year and 10.3 billion shares outstanding at year-end. Calculate Amazon's basic earnings per share (EPS) for the fiscal year 2023, and determine if it has improved from the previous year when the basic EPS was $1.25. The Walt Disney Company is evaluating its financial performance for the fiscal year ending September 30, 2023. The company reported total revenues of $82.7 billion, cost of revenues of $52.3 billion, and operating expenses of $21.5 billion. Disney's interest expense for the year was $1.2 billion, and its effective tax rate was 25%. The company had 1.83 billion weighted average shares outstanding during the year. Disney is considering a new expansion project that would require $5 billion in capital expenditures. To assess its ability to fund this project internally, Disney wants to calculate its free cash flow for the fiscal year 2023, assuming depreciation and amortization expenses were $5.2 billion and the change in working capital was a cash inflow of $800 million.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Transcribed Image Text:Amazon.com, Inc. is preparing its financial
statements for the fiscal year ending December 31,
2023. The company's preliminary income statement
shows net sales of $514 billion, cost of sales of $320
billion, operating expenses of $160 billion, and other
income of $2 billion. Amazon's effective tax rate for
the year is 21%. The company had 10.2 billion
weighted average shares outstanding during the
year and 10.3 billion shares outstanding at year-end.
Calculate Amazon's basic earnings per share (EPS)
for the fiscal year 2023, and determine if it has
improved from the previous year when the basic
EPS was $1.25. The Walt Disney Company is
evaluating its financial performance for the fiscal
year ending September 30, 2023. The company
reported total revenues of $82.7 billion, cost of
revenues of $52.3 billion, and operating expenses of
$21.5 billion. Disney's interest expense for the year
was $1.2 billion, and its effective tax rate was 25%.
The company had 1.83 billion weighted average
shares outstanding during the year. Disney is
considering a new expansion project that would
require $5 billion in capital expenditures. To assess
its ability to fund this project internally, Disney
wants to calculate its free cash flow for the fiscal
year 2023, assuming depreciation and amortization
expenses were $5.2 billion and the change in
working capital was a cash inflow of $800 million.
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