Question

Annual Report Assignment:

Select an annual report, review the financial statements and related notes and answer the following questions.

1.Name of Company

2.Describe the company you have selected and identify the company type, i.e. Service firm, merchandiser, manufacturer, etc.

3.What is the company’s year-end and was it profitable in the most recent fiscal year?

4.Based on your review of the financial statements and the related notes to the financial statements were all of your questions about the company answered? Would you invest in the company? Why or why not?

5.Who were the company’s independent accountants? What was the auditor’s opinion of the audited financial statements?   Restate their opinion. What does it say about the quality of the financial statements and the company’s system of Internal controls?

Answer 1

1) Amazon Inc.

2.) Amazon is becoming the leading company in world. The American Customer Satisfaction Index recently announced the results of its annual survey, and for the 8th year in a row customers ranked Amazon #1. The United Kingdom has a similar index, The U.K. Customer Satisfaction Index, put out by the Institute of Customer Service. For the 5th time in a row Amazon U.K. ranked #1 in that survey. Amazon was also just named the #1 business on LinkedIn’s 2018 Top Companies list, which ranks the most sought after places to work for professionals in the United States.

Amazon is an ecommerce as well as as service organisation

3) Company's fiscal year ends on 31 December. It has been profitable from many years and its recent net income is $3,033 millions.

4) i will definetely invest in this company as is has just started its business with a book store and also in 1995 its stock has been regarded as junk. however today it has become number 1 organisation.

Amazon has Total Assets of $131310 millions and Total Liablities of $103601 millions which results in Debt to Asset ratio of 0.788.

Its price earning ration is 418.77 which is way more than its estimated of 110.25 while its future PE growth estimated at 279.51%.

5) Company's independent accountant - Ernst & Young LLP

Unqalified report has been issued.

"In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Amazon.com, Inc. at December 31, 2017 and 2016, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2017, in conformity with U.S. generally accepted accounting principles.

They also audited internal control over financial reporting as of December 31, 2017 based on COSO framework and had given an unqualified report.