Question

In: Accounting

Please pick any company of your choice, find their most recent form 10-K on the internet...

Please pick any company of your choice, find their most recent form 10-K on the internet and summarize the type of segment data they publish. Also provide us with the most important findings you discovered when reading the segment information of your company.

Solutions

Expert Solution

1. Summary on the segment data of Amazon Inc based on form 10K for fiscal year ended Dec'2018

Amazon has divided it's operations into three segments: North America, International, and AWS. Amazon allocates to segment results, the operating expenses “Fulfillment,” “Marketing,” “Technology and content,” and “General and administrative” based on usage, which is generally reflected in the segment in which the costs are incurred. The majority of technology infrastructure costs are allocated to the AWS segment based on usage. The majority of the remaining non-infrastructure technology costs are incurred in the U.S. and are allocated to our North America segment. There are no internal revenue transactions between our reportable segments.

North America

The North America segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through North America-focused online and physical stores. This segment includes export sales from these online stores. Amazon's North America segment dominates its net sales, accounting for $141.4 billion in 2018 and operating income of $7.3 billion. This is about 60.7% of the company's net sales for the year

International

The International segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through internationally-focused online stores. This segment includes export sales from these internationally-focused online stores (including export sales from these online stores to customers in the U.S., Mexico, and Canada), but excludes export sales from our North America-focused online stores. Amazon has lost money in each of the last 3 years in its International sales. In 2018, it lost $2.1 billion on $65.9 billion in International sales. This is an improvement from the operating loss for FY 2017, when the company lost $3.0 billion on $54.3 billion in International sales. In 2018, Amazon's International segment accounted for 28.3% of the company's net sales.

AWS (Amazon Web Services)

The AWS segment consists of amounts earned from global sales of compute, storage, database, and other service offerings for start-ups, enterprises, government agencies, and academic institutions.

2. The most important findings discovered when reading the segment information:

  • North America is the most dominating segment for Amazon which comprises of more than half of total net sales revenues in 2018, 2017 and 2016. There has been a quadruple jump in the segment operating income of North America from 2017 ($2.8bn) to 2018 ($7.2bn)
  • Retail is the primary source of revenue for North America segment and the other primary source of revenue for North America is subscriptions, including Amazon Prime.
  • International is one Amazon segment that has not thrived in recent years posting losses in it's international sales however the losses in 2018 ($2bn) were substantially low as compared to losses in 2017 ($3bn).
  • Despite contributing the least to the total net sales of the company, AWS has generated the most operating income in 2016 ($3.1 bn), 2017 ($4.3bn) and 2018 ($7.3bn). Amazon refers to them as a "broad set of global compute, storage database, and other service offerings." AWS sales and profit have consistently grown in the past three years.
  • These segments reflect the way amazon's chief operating decision maker evaluates the Company’s business performance and manages its operations.

Related Solutions

Pick a federal agency of your choice. Find that agency’s appropriation for a recent fiscal year....
Pick a federal agency of your choice. Find that agency’s appropriation for a recent fiscal year. That may be located in an annual appropriation act or in a consolidated appropriation bill that lumps a number of normal appropriation acts together. Are there provisions of a somewhat substantive nature that are included in the appropriation act?
Please find a supply chain practice conducted by a company of your choice that achieves any...
Please find a supply chain practice conducted by a company of your choice that achieves any of the triple-A standards (Agility, Adaptability, and Alignment). USE YOU OWN WORDS AND EXAMPLE
Use most recent (2019) Form 10-K for Snap-on Inc. to complete the requirements below. To obtain...
Use most recent (2019) Form 10-K for Snap-on Inc. to complete the requirements below. To obtain the Form 10-K, you can search EDGAR system at sec.gov or search “Corporate Information” on the company's corporate website at www.snapon.com (Links to an external site.). Read carefully the following portions of the document: A. First section entitled "10-K" B. Notes to Financial Statements: Note 1 -> Summary of Accounting Policies “Shipping and handling” “Advertising and promotion” “Note 4: Inventories” Questions: Looking in the...
View: SEC.Gov (AMZN most recent 10-K form) Provide the following: - The amount of translation gain...
View: SEC.Gov (AMZN most recent 10-K form) Provide the following: - The amount of translation gain or loss that is booked on both the income statement and balance sheet. - What is the realized and unrealized amount? Cut and paste any info (if needed)
Using the Internet, locate the most recent financial report of a company of your choosing. The...
Using the Internet, locate the most recent financial report of a company of your choosing. The company you select to research must be in the business of manufacturing a product. If the required information is not available, then you will need to select a different company. Write an initial post by responding to the following: Do not research the company listed in the text. What categories of inventory does the company show in its inventories footnote under “Notes to Consolidated...
From Starbucks Corp form 10k ( 10-K reports on SEC.GOV and most recent two years report...
From Starbucks Corp form 10k ( 10-K reports on SEC.GOV and most recent two years report should be used for some ratio analysis ) Balance Sheet Using the 10-K, show that the fundamental accounting equation, Assets = Liabilities + Stockholders' Equity, is true for your company at the end of the most recent year-end. A _______= L __________+ S.E. _____________ What was your company's largest asset (net) at the end of the most recent year? List the types of assets...
Ratio Analysis *From Starbucks Corp form 10k ( 10-K reports on SEC.GOV and most recent two...
Ratio Analysis *From Starbucks Corp form 10k ( 10-K reports on SEC.GOV and most recent two years report should be used for some ratio analysis ) Calculate your company's gross profit rate for the past two years. Did they increase or decrease? Explain the meaning of the change. Calculate your company's account receivable turnover, inventory turnover for the past three years. What does the trend suggest to you about the company Calculate the company's return on equity (ROE) for the...
Question 2 Access the most recent Form 10-K (year 2017) for both Exxon Mobil and Chevron...
Question 2 Access the most recent Form 10-K (year 2017) for both Exxon Mobil and Chevron and answer the following questions. Required: a. Determine whether each company’s foreign operations have a predominant functional currency. Discuss the implication this has for the comparability of financial statements between the two companies. b. Determine the amount of translation adjustment, if any, reported in other comprehensive income in each of the three most recent years. Explain the sign (positive or negative) of the translation...
Using the internet, find the annual salary of the CEO of any company of your choosing....
Using the internet, find the annual salary of the CEO of any company of your choosing. Do you believe the CEO of the company you chose is being compensated for being an excellent manager? Do you feel that this salary is fair, or that the salary should be higher or lower? Why? If you were the CEO of company, how much would you think is a fair salary, and what would be your philosophy in compensating your employees?
Obtain Tesla's most recent annual report or Form 10-K. The Form 10-K can be obtained from (A) from the investor relations section of the company's Web site or (B) by using the company search feature of the SEC's EDGAR database.
Tesla is the company.Obtain Tesla's most recent annual report or Form 10-K. The Form 10-K can be obtained from (A) from the investor relations section of the company's Web site or (B) by using the company search feature of the SEC's EDGAR database.Based on the information in the company's most recent annual report, answer the following questions:What depreciation methods does the company use to compute depreciation expense?How much depreciation expense does the company report on the income statement?What is the...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT