In a three-page research paper discuss how the SECs EDGAR | Search Tools improves how investors find and use financial information. In your paper,
· Explain how investors can use the Securities and Exchange Commissions (SEC) database at EDGAR | Search Tools (Links to an external site.) to research a companys operations and financial information.
· Assess the financial performance of Amazon.com, Inc. (AMZN) by determining the risk of investing in the company through financial statement analysis. To make the above assessment and determination, go to Amazons.com (Links to an external site.) official website, and locate the companys Investor Relations link. Using the Investors Relations link, find financial information such as SEC Filings and Annual Reports.
· Conclude how investors can assess Amazons.com financial performance and risk using Annual Reports.
· Explain the content of each report listed below in detail and how it relates to your assessment of Amazons.com financial performance.
o Form 10-K SEC filings
o Annual Reports
o Management Discussion and Analysis
o Managements Responsibility for Financial Reporting
o Managements Report on Internal Control over Financial Reporting
o Auditors Report
o Selected Financial Data
Amazon.com, Inc. (AMZN) is the worlds largest electronic commerce and cloud computing company measured by revenue and market capitalization. The following items were adapted from a recent Annual Report of Amazon.com (Links to an external site.) for the year ending December 31:
In millions
1. Accounts payable
$16,459
2. Accounts receivable
5,612
3. Cash
14,557
4. Cost of sales
62,752
5. Income tax expense
167
6. Interest expense
210
7. Inventories
8,299
8. Net cash provided by operating activities
6,842
9. Net cash flows used for investing activities
(5,065)
10. Net sales
88,988
11. Other expense
118
12. Other income
76
13. Property, plant, and other long-term assets
16,967
14. Selling, general, and administrative expenses
26,058
15. Retained earnings (Dec. 31)
2,190
Indicate on which financial statement you would find each of the preceding items using the following notations (note: an item may appear on more than one statement):
IS Income statement
SE Statement of stockholders equity
BS Balance sheet
SCF Statement of cash flow
Prepare an income statement for the year ending December 31, based on the com, Inc. financial statement data shown above.
