This and similar cases in later chapters focus on the financial statement of a real compan...

This and similar cases in later chapters focus on the financial statement of a real company— Amazon.com, Inc., the Internet shopping leader. As you work each case, you will gain confidence in your ability to use the financial statements of real companies.

Refer to Amazon.com’s financial statements in Appendix A at the end of the book.

Requirements

1. How much in cash (including cash equivalents) did Amazon.com have on December 31, 2009?

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2. What were the company’s total assets at December 31, 2009? At December 31, 2008?

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3. Write the company’s accounting equation at December 31, 2009, by filling in the dollar amounts:

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4. Identify net sales (revenue) for the year ended December 31, 2009. How much did total revenue increase or decrease from 2008 to 2009?

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5. How much net income or net loss did Amazon earn for 2009 and for 2008? Based on net income, was 2009 better or worse than 2008?