XACC/290 Week 1: Amazon's Financial Reporting Problem
Financial Reporting Problem Part 1
XACC/290
Kathleen Downey
Brittany Baker
Amazon became a publically traded company in October 1995. In 1996, it was reincorporated in Delaware. Amazon issued its initial public offering of stock on May 15, 1997, trading under the NASDAQ stock exchange symbol AMZN, at a price of $18.00 per share in the U.S. ($1.50 after three stock splits in the late 1990s Wikipedia). Amazon's initial business proposal was different they it did not expect to make a profit for four to five years. This "slow" growth caused stockholders to complain about the company not reaching profitability fast enough to justify investing in, or to even survive in the long-term. When the dot-com era grew the start of the …show more content…
Amazons net revenue or the last three annual reporting in 2014 is $88,810 million in 2013 it was $73,707 million and 2012 $60,414 million. (Net sales include product and service sales. Product sales represent revenue from the sale of products and related shipping fees and digital media content where we record revenue gross. Service sales represent third-party seller fees earned (including commissions) and related shipping fees, digital content subscriptions, and non-retail activities such as AWS, advertising services, and our co-branded credit card agreements. Amazon Prime membership fees are allocated between product sales and service sales and amortized over the life of the membership according to the estimated delivery of services. Amazon Annual Report 2014) in just a decade from 2000-2010, Amazon has created a clientele of more than 30 million people. Amazon.com is basically a retail site with a sales revenue model. Amazon makes its money by taking a small percentage of the sale price of each item that is sold through its website. Companies pay Amazon to advertise on their site. They profit from both selling others companies items as well
XACC/290
Kathleen Downey
Brittany Baker
Amazon became a publically traded company in October 1995. In 1996, it was reincorporated in Delaware. Amazon issued its initial public offering of stock on May 15, 1997, trading under the NASDAQ stock exchange symbol AMZN, at a price of $18.00 per share in the U.S. ($1.50 after three stock splits in the late 1990s Wikipedia). Amazon's initial business proposal was different they it did not expect to make a profit for four to five years. This "slow" growth caused stockholders to complain about the company not reaching profitability fast enough to justify investing in, or to even survive in the long-term. When the dot-com era grew the start of the …show more content…
Amazons net revenue or the last three annual reporting in 2014 is $88,810 million in 2013 it was $73,707 million and 2012 $60,414 million. (Net sales include product and service sales. Product sales represent revenue from the sale of products and related shipping fees and digital media content where we record revenue gross. Service sales represent third-party seller fees earned (including commissions) and related shipping fees, digital content subscriptions, and non-retail activities such as AWS, advertising services, and our co-branded credit card agreements. Amazon Prime membership fees are allocated between product sales and service sales and amortized over the life of the membership according to the estimated delivery of services. Amazon Annual Report 2014) in just a decade from 2000-2010, Amazon has created a clientele of more than 30 million people. Amazon.com is basically a retail site with a sales revenue model. Amazon makes its money by taking a small percentage of the sale price of each item that is sold through its website. Companies pay Amazon to advertise on their site. They profit from both selling others companies items as well