Financial Statements.pdf - 1 Financial Statements ACC/561...

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1Financial StatementsACC/561Financial StatementsJazmin PierceUniversity of Phoenix, School of BusinessAccountingACC/561Professor Nye Clinton and Professor Michael De MarcoFebruary 18, 2019
2Financial StatementsACC/561IntroductionThis is a compilation of the Income Statement, Statement of Shareholders' Equity,Balance Sheet, and Statement of Cash Flows regarding a publicly traded, U.S. Corporation inwhich I am familiar with. I was tasked with researching the company and providing anexaminations of the above financial statements. The compiled messages below are examplesprovided from the course textbook along with other outside sources describing each.Net Income of Amazon2018 was a busy, profitable year for Amazon.com Inc. E-retailing’s leader generated$141.92 billion in product sales in 2018, up 19.7% from $118.57 billion in 2017. Product sales inthe fourth-quarter holiday period accounted for 31.5% of 2018 product sales, coming in at$44.70 billion, up 8.2% from Q4 2017. Product sales account for goods sold by Amazon andexclude revenue from service sales, such as Amazon’s computer power business (AWS) andcommissions paid by Amazon marketplace sellers. The number of units of goods soldworldwide, by Amazon and by marketplace sellers, during the quarter increased 14%.Amazon’s revenue across all business segments totaled $232.89 billion in 2018, up30.9% from $177.87 billion in 2017. Amazon’s net income was $10.07 billion, up 232.3% from$3.03 billion in 2017, with Amazon deriving about half of its operating income from AWS andhalf from its North American segment. International operations continue to lose money. (Enright,2019)
3Financial StatementsACC/561In general, earnings is important because it has information about future earnings whichthen containsinformation about future cash flows and these future cash flows are used to valuethe firm. In case of Amazon, it is a great growth company that has to keep raising equity tofinance its growth. So investors should be more concerned about growth rather than earnings. Idon't think you will see earnings accumulation until Bezos thinks he has dominated the whole

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Term
Fall
Professor
COLE
Tags
Accounting, Generally Accepted Accounting Principles, Amazon com Inc

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