Recast the financial statements Amazon below. Step 1 is to classify the lines
Recast the financial statements Amazon below. Step 1 is to classify the lines appropriately, then step 2 is to aggregate like items to produce the standardized
Helpful Notes: (a) fulfillment costs – these are viewed as cost of sales for most retailers; (b) stock option costs – these are probably for senior management and hence should probably be classified as SG&A; and (c) in the cash flow statement gains and losses on currency translations (shown at the end of the statement are shown as operating factors that imply that cash from operations in the standardized format does not equate to that reported by the firm.
Income Statement
Classifications | 2002 | 2001 | 2000 | |
Sales | Net sales | $3,932,936 | $3,122,433 | $2,761,983 |
Cost of Sales | Cost of sales | 2,940,318 | 2,323,875 | 2,106,206 |
Gross profit | 992,618 | 798,558 | 655,777 | |
Operating expenses: | ||||
fulfillment costs | Fulfillment | 392,467 | 374,250 | 414,509 |
SG&A | Marketing | 125,383 | 138,283 | 179,980 |
SG&A | Technology and content | 215,617 | 241,165 | 269,326 |
SG&A | General and administrative | 79,049 | 89,862 | 108,962 |
Stock-based compensation | 68,927 | 4,637 | 24,797 | |
stock option costs | Amortization of goodwill and other intangibles | 5,478 | 181,033 | 321,772 |
Restructuring-related and other | 41,573 | 181,585 | 200,311 | |
Total operating expenses | $928,494 | $1,210,815 | $1,519,657 | |
Income (loss) from operations | 64,124 | -412,257 | -863,880 | |
Interest Income | Interest income | 23,687 | 29,103 | 40,821 |
Interest Expense | Interest expense | -142,925 | -139,232 | -130,921 |
Other expense | Other income (expense), net | 5,623 | -1,900 | -10,058 |
Other gains (losses), net | -96,273 | -2,141 | -142,639 | |
Total non-operating expenses, net | ($209,888) | ($114,170) | ($242,797) | |
Other expense | Loss before equity in losses of equity-method investees | -145,764 | -526,427 | -1,106,677 |
Other expense | Equity in losses of equity-method investees, net | -4,169 | -30,327 | -304,596 |
Loss before change in accounting principle | ($149,933) | ($556,754) | ($1,411,273) | |
Cumulative effect of change in accounting principle | 801 | -10,523 | ||
Net loss | ($149,132) | ($567,277) | ($1,411,273) |
Balance Sheet
Classifications | Year Beginning January 1, ($000's) | 2003 | 2002 |
Current assets: | |||
Cash and Marketable Securities | Cash and cash equivalents | $738,254 | $540,282 |
Cash and Marketable Securities | Marketable securities | 562,715 | 456,303 |
Inventory | Inventories | 202,425 | 143,722 |
Accounts Receivable | Accounts receivable, net & other current assets | 112,282 | 67,613 |
Total current assets | $1,615,676 | $1,207,920 | |
Long-Term Tangible | Fixed assets, net | 239,398 | 271,751 |
Long-Term Tangible | Goodwill, net | 70,811 | 45,367 |
Other Long-Term Tangible | Other intangibles, net | 3,460 | 34,382 |
Other Long-Term Tangible | Other equity investments | 15,442 | 28,359 |
Other assets | 45,662 | 49,768 | |
Total assets | $1,990,449 | $1,637,547 | |
LIABILITIES AND STOCKHOLDERS' DEFICIT | |||
Current liabilities: | |||
Accounts Payable | Accounts payable | 618,128 | 444,748 |
Other Current Liabilities | Accrued expenses and other current liabilities | 314,935 | 305,064 |
Other Current Liabilities | Unearned revenue | 47,916 | 87,978 |
Interest payable | 71,661 | 68,632 | |
Long-term debt | Current portion of long-term debt and other | 13,318 | 14,992 |
Total current liabilities | $1,065,958 | $921,414 | |
Long-term debt | Long-term debt and other | 2,277,305 | 2,156,133 |
Shareholders’ deficit | |||
Common shareholders equity | Common stock, $0.01 par value: Authorized shares 5,000,000 Issued and outstanding shares -- 387,906 and 373,218 shares, respectively | 3,879 | 3,732 |
Common shareholders equity | Additional paid-in capital | $1,649,946 | $1,462,769 |
Common shareholders equity | Deferred stock-based compensation | -6,591 | -9,853 |
Common shareholders equity | Accumulated other comprehensive income (loss) | 9,662 | -36,070 |
Common shareholders equity | Accumulated deficit | -3,009,710 | -2,860,578 |
Total stockholders' deficit | ($1,352,814) | ($1,440,000) | |
Total liabilities and stockholders' deficit | 1,990,449 | 1,637,547 |
Cash Flow Statement
Classifications | Year Ended December 31, ($000's) | 2002 | 2001 | 2000 |
OPERATING ACTIVITIES: | ||||
Net income | Net loss | ($149,132) | ($567,277) | ($1,411,273) |
Long-term operating accruals – other | Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Long-term operating accruals – depreciation and amortization | Depreciation of fixed assets and other amortization | 82,274 | 84,709 | 84,460 |
Long-term operating accruals – other | Stock-based compensation | 68,927 | 4,637 | 24,797 |
Long-term operating accruals – other | Equity in losses of equity-method investees | 4,169 | 30,327 | 304,596 |
Long-term operating accruals – depreciation and amortization | Amortization of goodwill and other intangibles | 5,478 | 181,033 | 321,772 |
Long-term operating accruals – other | Non-cash restructuring-related and other | 3,470 | 73,293 | 200,311 |
Long-term operating accruals – other | Gain on sale of marketable securities, net | -5,700 | -1,335 | -280 |
Long-term operating accruals – other | Other losses (gains), net | 96,273 | 2,141 | 142,639 |
Long-term operating accruals – other | Non-cash interest expense and other | 29,586 | 26,629 | 24,766 |
Long-term operating accruals – other | Cumulative effect of change in accounting principle | -801 | 10,523 | |
Changes in operating assets and liabilities: | ||||
Net (investment in) or liquidation of operating working capital | Inventories | -51,303 | 30,628 | 46,083 |
Net (investment in) or liquidation of operating working capital | Accounts receivable, net and other cur. assets | -32,948 | 20,732 | -8,585 |
Net (investment in) or liquidation of operating working capital | Accounts payable | 156,542 | -44,438 | 22,357 |
Net (investment in) or liquidation of operating working capital | Accrued expenses and other current liabilities | 4,491 | 50,031 | 93,967 |
Net (investment in) or liquidation of operating working capital | Unearned revenue | 95,404 | 114,738 | 97,818 |
Net (investment in) or liquidation of operating working capital | Amortization of previously unearned revenue | -135,466 | -135,808 | -108,211 |
After-tax expense | Interest payable | 3,027 | -345 | 34,341 |
Net cash provided by (used in) operating activities | $174,291 | ($119,782) | ($130,442) | |
Year Ended December 31, ($000's) | 2002 | 2001 | 2000 | |
INVESTING ACTIVITIES: | ||||
Net (investment in) or liquidation of operating long-term assets | Sales/maturities of marketable securities and investments | 553,289 | 370,377 | 545,724 |
Net (investment in) or liquidation of operating long-term assets | Purchases of marketable securities | -635,810 | -567,152 | -184,455 |
Net (investment in) or liquidation of operating long-term assets | Purchases of fixed assets, including internal-use software | -39,163 | -50,321 | -134,758 |
Net (investment in) or liquidation of operating long-term assets | Investments (including in equity-method investees) | -6,198 | -62,533 | |
Net cash provided by (used in) investing activities | ($121,684) | ($253,294) | $163,978 | |
FINANCING ACTIVITIES: | ||||
Net stock (repurchase) or issuance | Proceeds from exercise of stock options and other | 121,689 | 16,625 | 44,697 |
Net stock (repurchase) or issuance | Proceeds from issuance of common stock, net of issue costs | 99,831 | ||
Net debt (repayment) or issuance | Proceeds from long-term debt and other | 10,000 | 681,499 | |
Net debt (repayment) or issuance | Repayment of capital lease obligations and other | -14,795 | -19,575 | -16,927 |
Financing costs | -16,122 | |||
Net cash provided by financing activities | $106,894 | $106,881 | $693,147 | |
Net debt (repayment) or issuance | Effect of exchange-rate changes on cash and cash equivalents | 38,471 | -15,958 | -37,557 |
Net debt (repayment) or issuance | Net increase (decrease) in cash and cash equivalents | $197,972 | ($282,153) | $689,126 |
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Rating:
/5
Solution: Recast the financial statements Amazon below. Step 1 is to classify the lines