Please complete problem 3-3 a-d for problem in image using Amazon\'s 2015 annual

Question

Please complete problem 3-3 a-d for problem in image using Amazon's 2015 annual report.

cial information for one of the l) Each group should compute the cost of a. Divide the class into its specific quarter 3) Have a representative of each group put that quarter's sales, cost of o t of goods sold Each group should.compute the gross margin percentage and gross margin percentage on the board. Class Discussion b. Have the clss discuss the change in each of these items from quarter to qu quarter and explain s the change might have occurred. Which was the best quarter and why? ATC 33 Research Assignment Analyzing Amazon.com's income statement Complete the follwing requirements using the most recent financial statements a on Amazon.com's corporate website. 0 financial statements available [20u Obtain the statements on the Internet by following the sta ng of the company's website may have changed since tite gie. Be auare hthe fornati instructions were written.) Go to www.amazon.com. At the bottom of the screen, under. Get to Know Us," click on "Investor Relations. Annual Reports and Proxies. Cick on "20hx Annual Report" (the most recent year). Read the following sections of the annual report The income statement, which thc omasts section. "Note 1-Description of Business and AcC Required h. Wha percetagp f amaron's sales go to pay for the costs nz d. How does Amason account for (report on its income statement) Amazon.com calls the “Consolidated Statemen áildl' Revenueš" and Cost of Sales." t of Operation nd Accounting Policies. percentage of Amazon's sales end up as net income! . What spoecific ecriteria are necessary before Amazon wi pleed and record the related revenue Anngenare ceearybefo ods to its beingsolding best e goods being so will recognize a sale as e as having been statement) the shipping cos costs it incurs

Explanation / Answer

Dear

The cost of Inbound shipping, i.e. the cost of shipping till the warehouse of the company is factored in the inventory cost.

The cost of outbound shipping i.e. from warehouse to the place of dellivery is considered as "Cost of Sales"

Undermentioned is the accounting policy mentioning the same.

Cost of Sales
Cost of sales primarily consists of the purchase price of consumer products, digital media content costs where we record revenue gross, including Prime Video and Prime Music, packaging supplies, sortation and delivery centers and related equipment costs, and inbound and outbound shipping costs, including where we are the transportation service provider. Shipping costs to receive products from our suppliers are included in our inventory, and recognized as cost of sales upon sale of products to our customers. Payment processing and related transaction costs, including those associated with seller transactions, are classified in “Fulfillment” on ou r consolidated statements of operations.

I hope this will help you !!

Thanks!

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