Principle of Financial Accounting

PART A (AMAZON): After completing this homework, you should have a much deeper understanding of the strategic and operational issues facing AMAZON. You will also have had experience “digesting” its quarterly results and listening to its earnings conference call. To learn about any public company, you would go through this same process. Do not wait until the last minute to do this homework. It requires you to carefully read a press release announcing AMAZON’s 2019 FIRST QUARTER (2019Q1) results and listen to a conference call via an archived webcast, which lasts about 36 minutes. Retrieve the earnings release by: 1) going to amazon.com, 2) clicking on Investor Relations near the bottom, 3) clicking on the second tab “Quarterly Results,” 4) clicking on Q1 2019 Earnings Release dated 4/25/19. Again, do not use the 10-Q, which is 49 pages. The following questions can be answered from a careful reading of the press release. There will be some new terminology that we have not covered yet, like “free cash flow,” so ignore those items for now. All dollar amounts should be expressed in millions (same format as in Amazon’s tables).