Accounting 1120 Financial Accounting 2

Financial Statement Analysis Assignment

Part I Questions
1.

Who audited the financial statements?

Ernst and Young LLP- Independent Registered Public Accounting Firm
2.
What is the name of the Income Statement?
Consolidated Statement of Operations
3.
What is the amount of cost of goods sold?
$45,971
4.
What is the amount of net income?
(39) In Millions
5.
What is the basic earnings per share (EPS) amount found on the Consolidated Statement of
Operations?
(0.09)
6.
What is the diluted earnings per share (EPS) amount found on the Consolidated Statement
of Operations?
(0.09)
7.
What is the name of the Balance Sheet?
Consolidated Balance Sheet
8.
What is the amount of Marketable Securities found on the Consolidated Balance Sheet?
$3,364
9.
What was the net change in unrealized gains/losses on Available-For-Sale securities, net of
tax?
The net change was $8.
10. Does Amazon.com have any preferred stock outstanding?
No
11. Using the Consolidated Balance Sheet, how many shares of common stock are issued?
478 shares of common stock issued
12. Using the Consolidated Balance Sheet, how many shares of common stock are
outstanding?
454 shares of common stock are outstanding
13. Using the Consolidated Balance Sheet, how many shares of treasury stock does
Amazon.com own?
Amazon owns 24 shares of treasury stock.
14. Using the Consolidated Balance Sheet, what are the values of the shares of treasury stock
that Amazon.com owns?
$1,837
15. Did Amazon.com declare any dividends this year?
No
16. Which format does Amazon.com use to report the Consolidated Statement of Cash Flows?
Indirect Method

17. Using the Consolidated Statement of Cash Flows, what is the amount of income tax paid in
cash?
Income tax paid in cash is $112.
18. Using the Consolidated Statement of Cash Flows, what were the cash flows from
operations?
Cash flows from operations were $4,180.
19. Using the Consolidated Statement of Cash Flows, what was the largest single inflow of
investing cash?
Sales and Maturities of marketable securities and other investments.
20. Using the Consolidated Statement of Cash Flows, what was the largest single outflow of
investing cash?
Purchases of property and equipment, including internal-use software and website
development.
21. Using the Consolidated Statement of Cash Flows, what was the largest single outflow of
financing cash?
Common stock repurchased
22. Using the Notes to Consolidated Financial Statements, was goodwill impaired in either
2012 or 2011?
No
23. Using the Notes to Consolidated Financial Statements, what method is used to depreciate
fixed assets?
Straight-line Method.
24. Using the Statement of Operations, what were weighted average shares used in
computation of basic EPS?
Weighted Average shares were 453.
25. Using the Statement of Operations, what were weighted average shares used in
computation of diluted EPS?
Weighted Average shares were 453.
26. Using the Notes to Financial Statements, the balance in Allowance for Doubtful Accounts
as of December 31, 2012 was:
$116
27. Using the Notes to Consolidated Financial Statements, which method is used for inventory
valuation?
FIFO
28. On which page of Notes does Amazon disclose that all highly liquid instruments are
included as cash equivalents?
The disclosure is made on page 43.
29. Using the Notes to Consolidated Financial Statements, how is Revenue recognized from
product sales or services rendered?
Cash has been collected
30. Using the Notes to Consolidated Financial Statements, what were Amazon.com's current
taxes for 2012?
Current Taxes for 2012 were $331. (incorrect) Answer was $693.
31. Using the Notes to Consolidated Financial Statements, how many legal proceedings is
Amazon involved in?
Amazon is involved in 29 legal proceedings.

32. Using the Notes to Consolidated Financial Statements, were there any changes in Internal
Control over Financial Reporting?
No
33. Calculate Gross Profit Margin Percentage for 2012:
24.75%
34. Calculate Gross Profit Margin Percentage for 2011:
22.44%
35. Calculate Days Sales in Receivables for 2012:
17.73
36. Calculate Days Sales in Receivables for 2011:
15.78
37. Calculate Inventory Turnover for 2012:
8.34
38. Calculate Inventory Turnover for 2011:
9.10
39. Calculate Current Ratio for 2012:
1.12
40. Calculate Current Ratio for 2011:
1.17
41. Calculate Debt to Total Assets Ratio for 2012:
74.84%
42. Calculate Debt to Total Assets Ratio for 2011:
69.31%
43. Calculate Acid-Test (Quick) Ratio for 2012:
.78
44. Calculate Acid-Test (Quick) Ratio for 2011:
.82
45. Calculate Profit Margin for 2012:
-.06
46. Calculate Profit Margin for 2011:
1.31%
47. Calculate Rate of Return on Common Stockholders Equity for 2012:
-.49%
48. Calculate Rate of Return on Common Stockholders Equity for
2011:
8.6%
49. Calculate Times Interest Earned Ratio for 2012:
6.1
50. Calculate Times Interest Earned Ratio for 2011:
15.18
51. Calculate the Price/Earnings ratio for 2012:
-2,854.7
52. Calculate the Price/Earnings ratio for 2011:
$131.37