Question

Need the following answered about Amazon.

For how many years does it present complete:

a. Balance sheets?

b. Income statements?

c. Cash flow statements?

Are its financial statements audited by independent CPAs? If so, by whom? What type of opinion did the financial report receive?

What are the values in the company’s accounting equation for the most recent year?

Did its total assets increase or decrease over last year? By what percentage? (Hint: Percentage change is calculated as [current year - last year] / last year. Show supporting computations.)

Did its net income increase or decrease over last year? By what percentage?

Which of the following had the largest percentage increase from last year to the current year? (See the formula in 6. above. Show all supporting computations.)

a. Net sales

b. Cost of sales

c. Net income

6. What are the future financial projections of the company and how does it plan to get there

Answer 1

As per policy only first four questions will be answered

Answers are provided taking reference of annual report 2017

Answer 1

For how many years does it present complete:

a. Balance sheets - 2 years (2017 & 2016)

b. Income statements - 3 years (2017, 2016 & 2015)

c. Cash flow statements - 3 years (2017, 2016 & 2015)

Answer 2

Are its financial statements audited by independent CPAs? If so, by whom? What type of opinion did the financial report receive?

Yes, there is a report of Independent Accounts (Auditor’s Opinion) from Ernst & Young LLP, which takes the responsibility of auditing the financial statements of Amazon Inc. According to Ernst & Young LLP opinion, Amazon.com, Inc. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on the COSO criteria.

Answer 3

What are the values in the company’s accounting equation for the most recent year?

The Accounting Equation (Balance Sheet)

A (assets) = L (liabilities) + SE (shareholder’s equity)

$131310 = $82626 + $48684

Answer 4

Did its total assets increase or decrease over last year? By what percentage?

Total assets increased over last year.

Total assets in 2017 - 131310

Total assets in 2016 - 83402

Percentage change = [current year - last year] / last year

=(131310-83402)/83402 = 57.44%