Reference no: EM133516732
Assignment: Exploring Financial Statements
Find the annual filing (Form 10-k) of Amazon.com, Inc. for the year ended December 31, 2022. (The report is posted on Canvas under the Assignment post.) Briefly answer the following questions using the information contained in the indicated section of the 10-K. Unless otherwise noted, the questions relate to fiscal year 2022. Complete sentences are not required except where specifically noted.
I. GeneralCompany Information (use ITEM 1. BUSINESS)
A. What are the three main operating segments of the company
B. What principal competitive factors does the company list related to their retail business?
C. Approximately how many employees does Amazon have?
D. List one business and industry risk identified by the company?
E. List one operating risk identified by the company?
F. List one legal and regulatory risk identified by the company?
II. Additional Analysis (use ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS)
A. Which of Amazon's three operating segments reported the highest amount of net sales in 2022?
B. Which of Amazon's three operating segments reported the highest year-over-year growth in net sales from 2021 to 2022?
C. What percentage of Amazon's total 2022 net sales comes from their international segment?
D. What reason(s) does Amazon give for the increase in the total cost of sales in 2022 compared to 2021?
E. How much does Amazon expect sales to grow in the first quarter of 2023, compared to the first quarter of 2022?
III. Financial Statement Information (use ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA)
Consolidated Statements of Income(for the year ended December 31, 2022)(page 37)
A. How revenue did Amazon earn from selling products? (in millions of dollars)?
B. What was the cost of inventory sold by Amazon?
C. What was Amazon's operating income (in millions of dollars)?
Consolidated Balance Sheets(December 31, 2022) (page 39)
A. How much in cash and cash equivalents did Amazon report at December 31, 2022 (in millions of dollars)?
B. How much does Coke expect to collect in cash from customers for purchases made as of year endDecember 31, 2022 (in millions of dollars)?
C. Calculate the average accounts receivable (net of allowances) for 2021 and 2022 (in millions of dollars)?
D. On average, how many days does it take for Amazon to collect accounts receivable from customers? Estimate this using the days sales outstanding ratioformula = 365 ?(average accounts receivable ?total net sales for 2022).
E. How much inventory does Amazon have on hand at year endDecember 31, 2022 (in millions of dollars)?
F. How much in property, plant, and equipment (net of accumulated depreciation) did Amazon report on its balance sheetat December 31, 2022 (in millions of dollars)?
G. How much money does Amazon owe for accounts payable and accrued expenses at December 31, 2022 (in millions of dollars)?
H. How much money does Amazon still owe on long-term loans at December 31, 2022 (in millions of dollars)?
I. How much money has Amazon raised by issuing shares to investors (in millions of dollars) as of December 31, 2022? Combine the common stock, preferred stock and additional paid-in capital accounts to determine this amount.
J. How much retained earnings did Amazon reportat December 31, 2022 (in millions of dollars)?
Consolidated Statement of Cash Flows (page 36)
A. What was the net change in Amazon's cash and cash equivalents during the year ended December 31, 2022 (in millions of dollars)?
B. How much did Amazon pay to buy property and equipment during the year ended December 31, 2022 (in millions of dollars)?
C. What was the total amount of cash Amazon used to make loan paymentsduring the year ended December 31, 2022 (include both short and long term debt repayments)(in millions of dollars)?
D. What is Amazon's net cash provided by operating activitiesduring the year ended December 31, 2022 (in millions of dollars)?
IV. Footnotes Analysis (use NOTES TO CONSOLIDATED FINANCIAL STATEMENTS)
A. What costs do Amazon include in the cost of sales?
B. How much of Amazon's unearned revenue reported on December 31, 2021 was recognized as revenue in 2022?
C. How much depreciation and amortization expense did Amazon recognize in the 2022 income statement?
D. What percentage of Amazon's fixed assets (i.e., property, plant and equipment) are land and buildings as of December 31, 2022? Use the gross amounts (i.e., before accumulated depreciation)
E. What is the main complaint against Amazon in the lawsuit Frame-Wilson vs. Amazon.com?
F. What percentage of Amazon's 2022 net sales is generated in the United States?
G. Which accounting firm conducted the audit of Amazon's financial statements?