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Horizontal AnalysisFinal Question HEET SHEET Amazon.com. Inc. is the largest Int

ID: 2330138 • Letter: H

Question


Horizontal AnalysisFinal Question HEET SHEET Amazon.com. Inc. is the largest Intemet retailer in the United States. Amazon's income SHEET statements through income from operations for two recent years follow Amazon.com, Inc. Operating Income Statements For the Years Ended December 31 Year 2 Year 1 in millions) (in millions) 3 Product sales 0,080.00 $60,90300 15,549.00 74,452.00 $54,18100 8,58500 5,133 00 6,565.00 1.129.00 114.00 73,707.00 745.00 4 Service sales 18,908.00 588,988.00 $62,75200 10,766.00 4,332.00 9,275.00 155200 133.00 88,810.00 178.00 Total sales | Cost of sales 7 Fulfillment s Marketing 9 Technology and content 0 General and administrative t Other operating expense (income), net af Total operating expenses Income from operations « Check My Work ems Email Instructor Save and : 1.63% e here to search

Explanation / Answer

To calculate Increase or Decrease, we have to deduct Year 2 values from Year 1 Values.

Formula for calcuate Percentage : Increase/(Decrease) / Year 1 values

Amazon.com Inc Operating income statements For the years Ended December 31 Year 2 Year 1 Increase/(Decrease) Percent (In Million) (In Million) (In Million) Product sales $ 70,080.00 $ 60,903.00 $                      9,177.00 15.1% Service sales $ 18,908.00 $ 13,549.00 $                      5,359.00 39.6% Total sales $ 88,988.00 $ 74,452.00 $                   14,536.00 19.5% Cost of sales $ 62,752.00 $ 54,181.00 $                      8,571.00 15.8% Fullfillment $ 10,766.00 $    8,585.00 $                      2,181.00 25.4% Marketing $    4,332.00 $    3,133.00 $                      1,199.00 38.3% Technology and content $    9,275.00 $    6,565.00 $                      2,710.00 41.3% General and administrative $    1,552.00 $    1,129.00 $                         423.00 37.5% Other operating expense (income) net $        133.00 $        114.00 $                            19.00 16.7% Total operating expenses $ 88,810.00 $ 73,707.00 $                   15,103.00 20.5% Income from operations $        178.00 $        745.00 $                       (567.00) -76.1%