Accounting Assignment

Question :

As for introduction to the chosen company, Amazon should include the explanations to the changes in the income statement and balance sheet for two years . The excerpts of the income statement and balance sheet are acceptable. But the discussions are limited, explanations should include more discussions on the performance and the variance. Discussing the change in "operational and financial' performance is significant. The variance in the performance of the major variables like gross profit, revenue, etc. can be compared for two years. Such points will add value to the answer.

Answer :

This report will be categorized into various parts that will be talking about the financial and operational health of a massive American Multinational Conglomerate Technology Corporation headquarters of which is situated in Seattle it is none other than AMAZON, it deals in e-commerce, digital streaming under the name AMAZON prime, AI and Cloud computing with employing more than 8,40,000 people spread over 13 countries around the world. it had churned an annual revenue of more than 280 billion US dollars for the year 2018-19, its market capitalization reached 1.003 trillion US dollars this April, making it one of the biggest companies out there.

AMAZONS mission and vision revolve around companies' future growth, their positioning against the other players, and for the customers, it mainly runs on three wheels that are: Prices at its lowest, no compromise on quality, and convenient experience for their customers. And they achieve this by continuously improving their services and their technology they also need to fulfil their social and environmental responsibilities for an example in the time of this global pandemic they are giving their workers a safety training of 6 hours so that they can serve their customers with at most care apart from this they are also taking steps in the betterment of their employees like increasing their wages of $2 per hour setting an example and benchmark for its competitors.

From the analysis of annual reports of 2018 & 2019 it can be seen that there is an increase of 20.45% in the level of sales which has resulted in an increase of net earnings by 15.04% this has brought an increase in earnings per share of 13.44% for its equity shareholders but when we compare this with the level of performance achieved by AMAZON in year 2018 we can analyse that there is around 33.88% decrease in the percentage increase of sales for year 2019 as compared to 2018 which has resulted in 232.11%  increase in net earnings for year 2018 as compare to 15.04% increase for 2019 which is around  93.52%  decrease in the net earnings increased percentage.

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