Compute trend analyses for net sales and net income

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Reference no: EM131786038

Financial Statement Problem -

Amazom financial statement

1. Compute trend analyses for net sales and net income. Use 2007 as the base year. What is the most notable aspect of this data? Explain your answer and how you arrived at your conclusion, step by step.

2. Compute inventory turnover for 2009 and 2008. The inventory balance at December 31, 2009 was $2,171 million. Do the trend of net income from 2008 to 2009 and the change in the rate of inventory turnover tell the same story or a different story? Explain your answer and how you arrived at your conclusion in detail, step by step.

Amazon, Inc. Consolidated Statements of Operations (in millions, except per share data)


Yr. ended Dec.31,


2009

2008

2007

Net sales

$24,509

$19,166

$14,835

Cost of Sales

18,978

14,896

11,482

Gross profit

5,531

4,270

3,353

Operating expenses (1):




Fulfillment

2,052

1,658

1,292

Marketing

680

482

344

Technology and content

1,240

1,033

818

General and administrative

328

279

235

Other operating expense (income), net

102

-24

9

Total operating expenses

4,402

3,428

2,698

Income from operations

1,129

842

655

Interest income

37

83

90

Interest expense

-34

-71

-77

Other income (expense), net

29

47

-8

Total non-operating income (expense)

32

59

5

Income before income taxes

1,161

901

660

Provision for income taxes

-253

-247

-184

Equity-method investment activity, net of tax

-6

-9


Net income

$902

$645

$476

 

Amazon Inc. Consolidated Balance Sheet (in millions, except per share data)


December 31,


2009

2008

Assets



Current assets



Cash and cash equivalents

$3,444

$2,769

Marketable securities

2,922

958

Inventories

2,171

1,399

Accounts receivable, net and other

988

827

Deferred tax assets

272

204

Total current assets

9,797

6,157

Fixed assets, net

1,290

854

Deferred tax assets

18

145

Goodwill

1,234

438

Other assets

1,474

720

Total assets

13,813

8,314

Reference no: EM131786038

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