Paper Topic:

Corporate Finance

Amazon .com is a Web based retail company engaged in retail sales of a number of products from books and electronics to gourmet foods and all types of entertainment media . Amazon .com was formed in 1995 and currently employs over 20 ,000 people . Amazon .com serves its customers through their retail websites and their major focus is on selection price and convenience . Amazon .com also offers programs that enable seller customers to sell their products on Amazon 's websites and their own branded websites and to fulfill s directly through Amazon

Amazon

.com is in a very competitive business . Their rivals include physical-world retailers , publishers , vendors , distributers and other on-line retail websites . Amazon .com competes against these rivals by offering a wider range of products , lower prices , free shipping on some items and by filling s faster . Like all retailers , Amazon 's business is affected by seasonality , which historically has resulted in higher sales volumes in the fourth quarter and especially around the Christmas shopping season

Below are summaries of Amazon .com 's income statements and balance sheets for years 2006 - 2008

Income Statement In Millions (Except EPS

2008 2007 2006

Net Sales 19 ,166 14 ,835 10 ,711

Gross Profit 4 ,270 3 ,353 2 ,456

Operating Expenses 3 ,428 2 ,698 2 ,067

Income From Operations 842 655 389

Net Interest Income 59 5 (12

Net Income 645 476 190

Diluted Earnings Per Share 1 .49 1 .12 0 .45

Balance Sheet

2008 2007 2006

Total Assets 8...

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