BASED ON AMAZON 2017 INCOME STATEMENT PLEASE Calculate Enterprise Value of Amazo
ID: 2808318 • Letter: B
Question
BASED ON AMAZON 2017 INCOME STATEMENT PLEASE Calculate Enterprise Value of Amazon.com, Inc. (AMZN) using both accounting and efficient market approaches. PLEASE SHOW ALL WORK
Income Statement
All numbers in thousands
Revenue
12/31/2017
Total Revenue
177,866,000
Cost of Revenue
111,934,000
Gross Profit
65,932,000
Operating Expenses
Research Development
22,620,000
Selling General and Administrative
38,992,000
Non Recurring
-
Others
214,000
Total Operating Expenses
173,760,000
Operating Income or Loss
4,106,000
Income from Continuing Operations
Total Other Income/Expenses Net
-304,000
Earnings Before Interest and Taxes
4,106,000
Interest Expense
-848,000
Income Before Tax
3,802,000
Income Tax Expense
769,000
Minority Interest
-
Net Income From Continuing Ops
3,033,000
Non-recurring Events
Discontinued Operations
-
Extraordinary Items
-
-
Effect Of Accounting Changes
-
-
Other Items
-
-
Net Income
Net Income
3,033,000
Preferred Stock And Other Adjustments
-
-
Net Income Applicable To Common Shares
3,033,000
Annual Income Statement (values in 000's)Get Quarterly Data
Period Ending:
Trend
12/31/2017
Cash and Cash Equivalents
$20,522,000
Short-Term Investments
$10,464,000
Net Receivables
$13,164,000
Inventory
$16,047,000
Other Current Assets
$0
Total Current Assets
$60,197,000
Long-Term Investments
$0
Fixed Assets
$48,866,000
Goodwill
$13,350,000
Intangible Assets
$0
Other Assets
$8,897,000
Deferred Asset Charges
$0
Total Assets
$131,310,000
Accounts Payable
$52,786,000
Short-Term Debt / Current Portion of Long-Term Debt
$0
Other Current Liabilities
$5,097,000
Total Current Liabilities
$57,883,000
Long-Term Debt
$24,743,000
Other Liabilities
$20,975,000
Deferred Liability Charges
$0
Misc. Stocks
$0
Minority Interest
$0
Total Liabilities
$103,601,000
Common Stocks
$5,000
Capital Surplus
$21,389,000
Retained Earnings
$8,636,000
Treasury Stock
($1,837,000)
Other Equity
($484,000)
Total Equity
$27,709,000
Total Liabilities & Equity
$131,310,000
Revenue
12/31/2017
Total Revenue
177,866,000
Cost of Revenue
111,934,000
Gross Profit
65,932,000
Operating Expenses
Research Development
22,620,000
Selling General and Administrative
38,992,000
Non Recurring
-
Others
214,000
Total Operating Expenses
173,760,000
Operating Income or Loss
4,106,000
Income from Continuing Operations
Total Other Income/Expenses Net
-304,000
Earnings Before Interest and Taxes
4,106,000
Interest Expense
-848,000
Income Before Tax
3,802,000
Income Tax Expense
769,000
Minority Interest
-
Net Income From Continuing Ops
3,033,000
Non-recurring Events
Discontinued Operations
-
Extraordinary Items
-
-
Effect Of Accounting Changes
-
-
Other Items
-
-
Net Income
Net Income
3,033,000
Preferred Stock And Other Adjustments
-
-
Net Income Applicable To Common Shares
3,033,000
Explanation / Answer
Enterprise Value = Market Capitalisation + Market Value of debt - Cash and Equivalents
= $ 27,709,000 + $ 103,601,000 - $ 20,522,000 SO ( EV ) = $ 110,788,000.
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