and discuss the following for each of the years: 2010, 2011, 2012, 2013, and 201
ID: 364157 • Letter: A
Question
and discuss the following for each of the years: 2010, 2011, 2012, 2013, and 2014. Carry the
calculations to two decimal places.
A. Net product sales growth (%): [(Net product sales of current year – Net product sales of
previous year)/Net product sales of previous year) x 100]
*Please note that for the year 2010, just put n/a, meaning not applicable or impossible to
calculate.
B. Net services sales growth (%): [(Net services sales of current year – Net services sales of
previous year)/Net services sales of previous year) x 100]
*Please note that for the year 2010, just put n/a, meaning not applicable or impossible to
calculate.
C. Net sales growth (%): [(Net sales of current year – Net sales of previous year)/Net sales
of previous year) x 100]
*Please note that for the year 2010, just put n/a, meaning not applicable or impossible to
calculate.
D. Gross margin (%): (Gross profit/Net sales) x 100
E. Fulfillment as a percentage of the cost of sales: (Fulfillment /Cost of sales) x 100
F. Marketing as a percentage of the cost of sales: (Marketing/Cost of sales) x 100
G. Technology and content as a percentage of net product sales: (Technology and
content/Net product sales) x 100
H. General and administrative as a percentage of net services sales: (General and
administrative/Net services sales) x 100
I. Operating profit margin (%): (Income from operations/Net sales) x 100
J. Return on sales (%): [Net income (loss)/Net sales] x 100
lirket by releasing Fire TV.S Three months later, in an ambitious strategic move, Amazon debuted in ways to create value for its customers. According to analysts, Amazon's business model was innovative EXHIBIT 3 Amazon.com's Consolidated Income Statements, 20o10-2014 (in millions of 2012 2010 Net product sales Net services sales Net sales Cost of sales Gross profit Fulfillment Marketing Technology and content General and administrative Other operating income (expense), net Income from operations Interest income $70,080 $60,903 $51,733 $42,000 $30,792 13,549 9,360 6,077 3,412 88,988 74,452 61,093 48,077 34,204 26,561 7,643 18,908 37,288 10,789 4,576 1,630 2,909 45,971 15,122 62,752 7.6. 10,766 4,332 9,275 1,552 8,585 2,898 2,408 6,565 1,734 (65) Interest expense Other income (expense), net Non-operating income (expense) Income (loss) before income taxes (289) (239) (132) Provision for income taxes Equity-method investment activity, net of tax Net income (loss) 37 (71) (155) $ (241) 274 $ (39) (12) (7) 631 1,152 Sources: Amazon.com Inc., Annual ReportsExplanation / Answer
The calculations are has follows:
Year
2014
2013
2012
2011
2010
1
Net product sales
70080
60903
51733
42000
30792
A
Net product sales growth (%)
=(70080-60903)/60903
= 15.07%
17.73%
23.17%
36.40%
N/A
2
Net Services Sales
18908
13549
9360
6077
3412
B
Net Services Sales growth %
(18909-13459)/13549
= 39.55%
44.75%
54.02%
78.11%
N/A
3
Net Sales
88988
74452
61093
48077
34204
C
Net Sales growth %
(88988-74452)/74452
= 19.52%
21.87%
27.07%
40.56%
4
Cost of Sales
62752
54181
45971
37288
26561
5
Gross Profit
26236
20271
15122
10789
7643
D
Gross Margin (%)
(26236/88988)
= 29.48%
27.23%
24.75%
22.44%
22.35%
6
Fulfillment
10766
8585
6419
4576
2898
E
Fulfillment % (of cost of sales)
(10766/62752)
= 17.16%
15.85%
13.96%
12.27%
10.91%
7
Marketing
4332
3133
2408
1630
1029
F
Marketing % (of COGS)
(4332/62752)
= 6.90%
5.78%
5.24%
4.37%
3.87%
8
Technology and content
9275
6565
4564
2909
1734
G
Technology and content % (of net product sales)
9275/88988
= 13.23%
10.78%
8.82%
6.93%
5.63%
9
General and Admin
1552
1129
896
658
470
H
General and Admin % (of net services sales)
1552/88988
= 8.21%
8.33%
9.57%
10.83%
13.77%
10
Income from operations
178
745
676
862
14606
I
Operating Profit margin (%)
178/88988
= 0.20%
1.00%
1.11%
1.79%
42.70%
11
Net income (loss)
-241
274
-39
631
1152
J
Return on sales (%)
-241/889888
= -0.27%
0.37%
-0.06%
1.31%
3.37%
Year
2014
2013
2012
2011
2010
1
Net product sales
70080
60903
51733
42000
30792
A
Net product sales growth (%)
=(70080-60903)/60903
= 15.07%
17.73%
23.17%
36.40%
N/A
2
Net Services Sales
18908
13549
9360
6077
3412
B
Net Services Sales growth %
(18909-13459)/13549
= 39.55%
44.75%
54.02%
78.11%
N/A
3
Net Sales
88988
74452
61093
48077
34204
C
Net Sales growth %
(88988-74452)/74452
= 19.52%
21.87%
27.07%
40.56%
4
Cost of Sales
62752
54181
45971
37288
26561
5
Gross Profit
26236
20271
15122
10789
7643
D
Gross Margin (%)
(26236/88988)
= 29.48%
27.23%
24.75%
22.44%
22.35%
6
Fulfillment
10766
8585
6419
4576
2898
E
Fulfillment % (of cost of sales)
(10766/62752)
= 17.16%
15.85%
13.96%
12.27%
10.91%
7
Marketing
4332
3133
2408
1630
1029
F
Marketing % (of COGS)
(4332/62752)
= 6.90%
5.78%
5.24%
4.37%
3.87%
8
Technology and content
9275
6565
4564
2909
1734
G
Technology and content % (of net product sales)
9275/88988
= 13.23%
10.78%
8.82%
6.93%
5.63%
9
General and Admin
1552
1129
896
658
470
H
General and Admin % (of net services sales)
1552/88988
= 8.21%
8.33%
9.57%
10.83%
13.77%
10
Income from operations
178
745
676
862
14606
I
Operating Profit margin (%)
178/88988
= 0.20%
1.00%
1.11%
1.79%
42.70%
11
Net income (loss)
-241
274
-39
631
1152
J
Return on sales (%)
-241/889888
= -0.27%
0.37%
-0.06%
1.31%
3.37%
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