ACC201 Week 3 Discussion 1 Examine Amazon.com ’s Income Statement

I estimate the percentage of Amazon’s Sales ending up as New Income, or loss, to be about 4.3%. I found this estimate by taking the total net income and dividing it by the total net sales. In millions, that’s $10,073 divided by $232,887. Take that amount, about .043253, and multiply by 100 to find your percentage. That is where 4.3% comes from.

I estimate the percentage of Amazon’s sales going to pay for the costs of the goods being sold to be about 94.7%. I found this estimate by taking the total operating expenses and dividing it by the total net sales. For Amazon that would be, in millions, $220,466 divided by $232,887. Take that amount, about .946665, and multiply by 100 to find your percentage. That is where 94.7% comes from.

The criteria that need to be met before Amazon will recognize a sale as having been completed and to later record, the related revenue is the goods must be in possession of the customer. Subscriptions are recorded over the entire subscription period,

Amazon accounts for the shipping cost in incurs to ship goods to its customers by including the cost in the inventory numbers. It is a cost of the sale is included in the price of the product itself.