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CONSOLIDATED STATEMENTS OF INCOME Walmart amazon Dollars in millions Year ended January 31, 2019 Amount $514,405 385,301 129,104 Year ended December 31, 2018 Amount $232,887 139,156 93,731 107,147 81,310 21,957 12,421 Net revenue Cost of goods sold Gross Profit Operating expenses Selling, general & adm expenses Net operating income Other non-operating income (expenses) Interest income Interest expense Other income (loss) - net Income before income taxes Provision for taxes Net income 217 (2,346) (8,368) 11,460 4,281 7,179 440 (1,417) (183) 11,261 (1,188) $ 10,073 $ 1) As of their respective year-ends, Walmart's total assets was $510,329 million while Amazon's was $162,648 million. Using these balances along with the appropriate balances presented in the respective income statement on the previous page, complete the ratios listed in the table below (two decimal places): (16 points - 4 points each] Walmart amazon Gross profit ratio Return on sales Asset Turnover Return on assets a. (Walmart / Amazon) has the highest mark-up for their products as demonstrated by their (Gross profit / Return on sales / Asset turnover / Return on assets) ratio. b. (Walmart / Amazon) is using their assets in the most effective way for generating revenue as shown by their (Gross profit / Return on sales / Asset turnover / Return on assets) ratio. cents covers c. For every dollar of sales recognized by Walmart, a total of cents covers the cost of the products sold, while the remaining expenses (including taxes), leaving earnings. cents in d. (Walmart / Amazon ) is generating the most earnings for the amount of assets invested. This is supported by their (Gross profit / Return on sales / Asset turnover / Return on assets) ratio. This higher ratio is being driven by (effectively controlling expenses / effectively using assets invested /both)

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