GSB003_Assessment 1_Guide PAGE 1 MANAGING FINANCIAL RESOURCES Assessment Task 1: Additional Guidance This document is provides additional guidance to assist students as they undertake MFR Assessment...

1 answer below »

View more »
Answered Same DaySep 11, 2021

Answer To: GSB003_Assessment 1_Guide PAGE 1 MANAGING FINANCIAL RESOURCES Assessment Task 1: Additional Guidance...

Tanmoy answered on Sep 14 2021
144 Votes
Australian Institute of Management
MANAGING FINANCIAL RESOURCES
Assessment Task 1: Additional Guidance
Student Name: Aarti Singh
Executive Summary
In this paper we will discuss about the financial performance of Amazon Inc. As per the requirements we will also discuss on the financial statement analysis of the company for the last four years. We have derived the financial results from Macro-Trends site. We have chosen Amazon as it is an online selling platform and is in demand as
it is a profitable organization. The retail e-commerce sales in the United States from 2017 till 2024 are projected to increase from $279727 billion to $476462 billion in 2024. This is due to the massive demand by the customers for online purchases and availability of products through digital platform. Amazon is one of the big four players and is expected to overtake the largest retailer Walmart very soon. This, this financial analysis will help us to evaluate the present situation of Amazon and compare it with the industry average. This will help us to know the value of Amazon in the e-commerce industry.
Table of Contents
Introduction…………………………………………………………………….Pg 1
Income Statement of Amazon and Analysis…………………………………….Pg 2
Balance Sheet and Analysis of Amazon……………………………………..Pg 3, 4 & 5
Cash Flow Statement of Amazon & Analysis…………………………………Pg 5 & 6
Ratio Analysis of Amazon……………………………………………………Pg 6, 7 & 8
Conclusion……………………………………………………………………….Pg 8
References………………………………………………………………………..Pg 9
Introduction
Amazon is an American multinational e-commerce platform and online company. It was founded in 1994 by Jeff Bezos in Seattle, Washington. Their main focus is cloud computing, artificial intelligence, digital streaming and e-commerce. Amazon has now become the big four e-commerce technology company along with Facebook, Google and Apple. Amazon sales large number of products through its online channel and also provide home delivery of the products to the customers. It has now become the No.1 Company in terms of revenue generation and market capitalization. It is also the largest online selling company in the world. There are various types of products sold in Amazon like books, toys, software, video games, apparels, electronic items and jewellery. It is now a publicly traded company in the NASDAQ. The revenue of the company is $280.522 billion as on 2019 and there are more than 1 million employees who work in Amazon. In this paper we will evaluate and analyse the financial statement i.e. the Income Statement, Balance Sheet and the Cash Flow Statement of the company. We will also conduct a ratio analysis of Amazon to evaluate the liquidity, solvency and profitability position of the company. For this we have considered the financials from 2015 to 2019.
Income Statement of Amazon
    PERIOD ENDING:
    12/31/2019
    12/31/2018
    12/31/2017
    12/31/2016
    Total Revenue
    28,05,22,000
    23,28,87,000
    17,78,66,000
    13,59,87,000
    Cost of Revenue
    16,55,36,000
    13,91,56,000
    11,19,34,000
    8,82,65,000
    Gross Profit
    11,49,86,000
    9,37,31,000
    6,59,32,000
    4,77,22,000
    OPERATING EXPENSES
     
     
     
     
    Research and Development
    0
    0
    0
    0
    Sales, General and Admin.
    10,04,45,000
    8,13,10,000
    6,18,26,000
    4,35,36,000
    Non-Recurring Items
    0
    0
    0
    0
    Other Operating Items
    0
    0
    0
    0
    Operating Income
    1,45,41,000
    1,24,21,000
    41,06,000
    41,86,000
    Add'l income/expense items
    10,35,000
    2,57,000
    5,48,000
    1,90,000
    Earnings Before Interest and Tax
    1,55,76,000
    1,26,78,000
    46,54,000
    43,76,000
    Interest Expense
    16,00,000
    14,17,000
    8,48,000
    4,84,000
    Earnings Before Tax
    1,39,76,000
    1,12,61,000
    38,06,000
    38,92,000
    Income Tax
    23,74,000
    11,97,000
    7,69,000
    14,25,000
    Minority Interest
    -14,000
    9,000
    -4,000
    -96,000
    Equity Earnings/Loss Unconsolidated Subsidiary
    0
    0
    0
    0
    Net Income-Cont. Operations
    1,15,88,000
    1,00,73,000
    30,33,000
    23,71,000
    Net Income
    1,15,88,000
    1,00,73,000
    30,33,000
    23,71,000
    Net Income Applicable to Common Shareholders
    1,15,88,000
    1,00,73,000
    30,33,000
    23,71,000
Analysis of Income Statement
The main items in the Amazon income statement are total revenue, gross profit, earnings before interest and taxes and Net Income. By observing the income statement it can be stated that the revenue from sales for Amazon have grown in 2019 by 20% over the previous year. Although it was observed that the growth in profit was 31% in 2017 and 2018. The growth in the sales of Amazon dropped due to global recession in 2019 and due to Covid-19 pandemic. The gross profit of the company grown by 23% in 2019 compared to the previous year. But, observing the figures of growth in gross profit for 2017 and 2018, it can be stated that it grew by 42% and 38% respectively. The EBIT of Amazon can be observed to be grown at 23% in...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here
April
January
February
March
April
May
June
July
August
September
October
November
December
2025
2025
2026
2027
SunMonTueWedThuFriSat
30
31
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
2
3
00:00
00:30
01:00
01:30
02:00
02:30
03:00
03:30
04:00
04:30
05:00
05:30
06:00
06:30
07:00
07:30
08:00
08:30
09:00
09:30
10:00
10:30
11:00
11:30
12:00
12:30
13:00
13:30
14:00
14:30
15:00
15:30
16:00
16:30
17:00
17:30
18:00
18:30
19:00
19:30
20:00
20:30
21:00
21:30
22:00
22:30
23:00
23:30