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Question: Select Annual Reports, Proxies, and Shareholders Letters, and open Amazon's most recent annual report.Read the income statement, which Amazon.com names as the "Consolidated Statement of Operations," and in "Note 1-Description of Business and Accounting Policies," under Notes to Consolidated Financial Statements, read the subsections titled "Revenues" and "Cost of Sales."
Then examine Amazon.com's income statement by addressing the following:
Estimate the percentage of Amazon's Sales as Net Income (Loss).
Estimate the percentage of Amazon's Sales going to pay for the costs of the goods being sold.
Summarize the specific criteria before Amazon recognizes a sale as completed and record the related revenue.
Discuss how Amazon accounts for (reports on its income statement) the shipping costs it incurs to ship goods to its customers.
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