Obj. 7 Amazon.com, Inc. (AMZN) 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. Income Statements For the Years Ended December 31 (In millions) Year 2 Year 1 Revenues: Product sales $ 94,665 $ 79,268 27.738 $ 107.006 Service sales 41,322 Total revenues. $ 135,987 Operating expenses: Cost of sales.. $ (88,265) (17,619) $ 71,651) Fulfillment... (13,410) Marketing.. Technology and content... (7,233) (5,254) ****.... (16,085) (12,540) General and administrative. (2,432) (1,747) Other operating expense (income), net. Total operating expenses Operating income (167) $ (131,801) Ş 4,186 (171) $ (104,773) Ş 2,233 a. Prepare a vertical analysis of the two income statements. Round percentages to one decimal place. b. Use the vertical analysis to explain the increase in operating income.

Obj. 7 Amazon.com, Inc. (AMZN) 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. Income Statements For the Years Ended December 31 (In millions) Year 2 Year 1 Revenues: Product sales $ 94,665 $ 79,268 27.738 $ 107.006 Service sales 41,322 Total revenues. $ 135,987 Operating expenses: Cost of sales.. $ (88,265) (17,619) $ 71,651) Fulfillment... (13,410) Marketing.. Technology and content... (7,233) (5,254) ****.... (16,085) (12,540) General and administrative. (2,432) (1,747) Other operating expense (income), net. Total operating expenses Operating income (167) $ (131,801) Ş 4,186 (171) $ (104,773) Ş 2,233 a. Prepare a vertical analysis of the two income statements. Round percentages to one decimal place. b. Use the vertical analysis to explain the increase in operating income.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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