From the Table of Contents, select Financial Statements and Supplementary Data.
ID: 2521666 • Letter: F
Question
From the Table of Contents, select Financial Statements and Supplementary Data. Use the (Consolidated) Income Statement to answer the following:
What was the company’s total sales revenue for the most recent year? What was their cost of goods sold? What was their gross profit? Calculate their gross profit percentage. Show calculations.
AMAZON.COM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
Year Ended December 31,
2015
2016
2017
Net product sales
$
79,268
$
94,665
$
118,573
Net service sales
27,738
41,322
59,293
Total net sales
107,006
135,987
177,866
Operating expenses:
Cost of sales
71,651
88,265
111,934
Fulfillment
13,410
17,619
25,249
Marketing
5,254
7,233
10,069
Technology and content
12,540
16,085
22,620
General and administrative
1,747
2,432
3,674
Other operating expense, net
171
167
214
Total operating expenses
104,773
131,801
173,760
Operating income
2,233
4,186
4,106
Interest income
50
100
202
Interest expense
(459
)
(484
)
(848
)
Other income (expense), net
(256
)
90
346
Total non-operating income (expense)
(665
)
(294
)
(300
)
Income before income taxes
1,568
3,892
3,806
Provision for income taxes
(950
)
(1,425
)
(769
)
Equity-method investment activity, net of tax
(22
)
(96
)
(4
)
Net income
$
596
$
2,371
$
3,033
Basic earnings per share
$
1.28
$
5.01
$
6.32
Diluted earnings per share
$
1.25
$
4.90
$
6.15
Weighted-average shares used in computation of earnings per share:
Basic
467
474
480
Diluted
477
484
493
See accompanying notes to consolidated financial statements.
Year Ended December 31,
2015
2016
2017
Net product sales
$
79,268
$
94,665
$
118,573
Net service sales
27,738
41,322
59,293
Total net sales
107,006
135,987
177,866
Operating expenses:
Cost of sales
71,651
88,265
111,934
Fulfillment
13,410
17,619
25,249
Marketing
5,254
7,233
10,069
Technology and content
12,540
16,085
22,620
General and administrative
1,747
2,432
3,674
Other operating expense, net
171
167
214
Total operating expenses
104,773
131,801
173,760
Operating income
2,233
4,186
4,106
Interest income
50
100
202
Interest expense
(459
)
(484
)
(848
)
Other income (expense), net
(256
)
90
346
Total non-operating income (expense)
(665
)
(294
)
(300
)
Income before income taxes
1,568
3,892
3,806
Provision for income taxes
(950
)
(1,425
)
(769
)
Equity-method investment activity, net of tax
(22
)
(96
)
(4
)
Net income
$
596
$
2,371
$
3,033
Basic earnings per share
$
1.28
$
5.01
$
6.32
Diluted earnings per share
$
1.25
$
4.90
$
6.15
Weighted-average shares used in computation of earnings per share:
Basic
467
474
480
Diluted
477
484
493
Explanation / Answer
Most recent year is Dec 31, 2017.
Total sales revenue of the year 2017 is $177,866.
Cost of the goods sold of the year 2017 is $111,934.
Gross profit of the year 2017 = Total sales revenue - Cost of goods sold
= $177,866 - $111,934
= $65,932
Gross profit percentage of the year 2017 = (Gross profit / Total sales revenue)×100
= ($65,932 / $177,866)×100
=0.3707×100
= 37.07%
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