Question

In: Accounting

The following information (Sin millions) comes from a recent annual report of Amazon.com Inc.:

Problem 1: 

The following information (Sin millions) comes from a recent annual report of Amazon.com Inc.: 

image.png

Required 

a. Compute Amazon's balance in cash at the beginning of the year 

b. Compute Amazon's total liabilities at the end of the year 

c. Compute Amazon's cost of goods sold for the year 

d. Compute the income before income tax for Amazon 

e. Compare net income (loss) for the year to net cash flow from operating activities. Why are these amounts different? Briefly explain.

Solutions

Expert Solution

SOLUTION

1. Beginning cash balance = Ending cash balance - Increase in cash

= $1,022 - $9

Beginning cash balance = 1,013

2. Assets = Total liabilities + Total Equity

$4,363 = Total liabilities + $431

Total liabilities = $4,363 - $431

Total liabilities = $3,932

3. Gross profit = Net sales - Cost of goods sold

Cost of goods sold = Net sales - Gross profit

= $10,711 - $2,456

Cost of goods sold = $8,255

4. Income before taxes = Revenue - expenses

= $10,711 - $2456 - $2067 -$12

Income before taxes = $6,176

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The following balance sheet information (in $ millions) comes from the Annual Report to Shareholders of...
The following balance sheet information (in $ millions) comes from the Annual Report to Shareholders of Merry International Inc. for the 2021 fiscal year. The following additional information from an analysis of Merry's financial position is available: Current ratio = 1.352397; Acid-test ratio = 0.5771067; Debt to equity ratio = 1.6157180. Required: Compute the missing amounts in the balance sheet. (Enter your answers in millions of dollars. Round your intermediate and final answers to the nearest whole dollar.) MERRY INTERNATIONAL...
The following balance sheet information (in $ millions) comes from the Annual Report to Shareholders of Merry International Incorporated for the 2024 fiscal year.
The following balance sheet information (in $ millions) comes from the Annual Report to Shareholders of Merry International Incorporated for the 2024 fiscal year. The following additional information from an analysis of Merry's financial position is available:Current ratio = 1.352421; Acid-test ratio = 0.5771317; Debt to equity ratio = 0.6901280.Required:Compute the missing amounts in the balance sheet.Note: Enter your answers in millions of dollars. Round your intermediate and final answers to the nearest whole dollar.
Following are account balances (in millions of dollars) from a recent FedEx annual report, followed by...
Following are account balances (in millions of dollars) from a recent FedEx annual report, followed by several typical transactions. Assume that the following are account balances on May 31, 2014: Account Balance Account Balance Property and equipment (net) $ 15,543 Receivables $ 4,581 Retained earnings 12,716 Other current assets 610 Accounts payable 1,702 Cash 2,328 Prepaid expenses 329 Spare parts, supplies, and fuel 437 Accrued expenses payable 1,894 Other noncurrent liabilities 5,616 Long-term notes payable 1,667 Other current liabilities 1,286...
1. The following data were included in a recent Papaya Inc. annual report (in millions): 2013...
1. The following data were included in a recent Papaya Inc. annual report (in millions): 2013 2014 2015 2016 Net revenue $ 79,225 $ 131,559 $ 183,500 $ 191,920 Net property, plant, and equipment 4,930 9,080 15,590 16,200 Required: Compute Papaya's fixed asset turnover ratio for 2014, 2015, and 2016. (Do not round intermediate calculations. Round your answers to 1 decimal place.) During 2016, Mellow reported a fixed asset turnover ratio of 9.9. Was Papaya's turnover better or worse than...
The following information comes from the 2019 Annual Report of the Cola Company: Accounts Receivable at...
The following information comes from the 2019 Annual Report of the Cola Company: Accounts Receivable at 1/1/19 $ 3,141 Allowance for Uncollectible Acconts at 1/1/19 51 2019 Sales (assume all were on credit) 30,990 2018 Collections of cash from customers 30,289 Write off of Customer Accounts 22 2019 estimate of Uncollectible Accounts 26 Required: Prepare t-accounts showing how the above activity flows through the Cola Company's accounts. MAKE SURE TO SHOW THE ENDING BALANCE (Label "Balance"FOR EACH ACCOUNT) Then answer...
ollowing are account balances (in millions of dollars) from a recent FedEx annual report, followed by...
ollowing are account balances (in millions of dollars) from a recent FedEx annual report, followed by several typical transactions. Assume that the following are account balances on May 31 (end of the prior fiscal year): Account   Balance Account Balance   Property and equipment (net) $ 19,343   Receivables $ 5,531   Retained earnings 16,516   Other current assets 800   Accounts payable 2,082   Cash 2,708   Prepaid expenses 519   Spare parts, supplies, and fuel 836   Accrued expenses payable 2,274   Other noncurrent liabilities 6,186   Long-term notes payable...
The following is an excerpt from the Freight Train, Inc.’s 2019 annual report: In Millions 2019...
The following is an excerpt from the Freight Train, Inc.’s 2019 annual report: In Millions 2019 2018 Debt $60,744 $59,484 Equity 49,693 46,445 Required Calculate the debt-to-equity ratio for Freight Train, Inc. for 2019 and 2018 based on year end values of debt and equity. b.   The present values of the operating leases totaled $6,192 and $6,448 in 2019 and 2018, respectively. Assume that the leases were capitalized (were included in the total amount of debt reported). Recalculate the debt-to-equity...
In its most recent annual report (all figures reported in $ millions) Briggs & Stratton reported...
In its most recent annual report (all figures reported in $ millions) Briggs & Stratton reported sales of $2,011 million. It also reported that its days' sales in receivables for the year was 43.2 days, days' sales in inventory was 22.6 days, and days' sales in payables was 37.4 days. Calculate the cash conversion cycle for the year and present your answer to one decimal place (e.g., 20.0).
Best Buy Co Inc. reported the following financial information in a recent financial statement ($ millions)....
Best Buy Co Inc. reported the following financial information in a recent financial statement ($ millions). Based on the information below, compute the additional working capital financing period. Sales …………………………………$50,272 Cost of sales …………………………………37,611 Inventory …………………………………5,897 Accounts receivable …………………………………2,348 Accounts payable …………………………………4,894 La Verne Company reports the sales and collection information below. Assume La Verne Company collects 20 percent of its sales in the month of the sale, 50 percent the next month, 25 percent the following month, and 5...
The following information is computed from Katy Inc.'s annual report for 2018. 2018   2017 Current assets...
The following information is computed from Katy Inc.'s annual report for 2018. 2018   2017 Current assets $ 2,731,020 $ 2,364,916 Property and equipment, net 10,960,286 8,516,833 Intangible assets, at cost less applicable    amortization     294,775       255,919   $13,986,081   $11,137,668   Current liabilities $ 3,168,123 $ 2,210,735 Deferred federal income taxes 160,000 26,000 Mortgage note payable 456,000 - Stockholders' equity 10,201,958     8,900,933   $13,986,081   $11,137,668   Net sales $33,410,599 $25,804,285 Cost of goods sold (30,168,715) (23,159,745) Selling and administrative expense (2,000,000) (1,500,000) Interest expense (216,936) (39,456)...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT