Executive summary of the Amazon

Amazon is a word that is known by everyone as it is one of the largest marketplaces on the earth. Although the USA represented one of the primary sources of income for the Amazon. It is not just working for one country but expanding globally. The sale of amazon has been increased since the year 2014. Its services sales are growing at a very fast pace. It was started back in 1994 as a bookstore and with time, Amazon expanded and became the store of everything. The core of this company is based on its online store. Amazon is not just limited to a certain brand but it contains different products of more than one brand. Amazon is a company that measures its success by the experience of customers, reasonable prices and the generation of free cash flow.

Cash and cash equivalents of the amazon company in the year of 2011, 2012 and 2013 had a major difference if we compare them and it was ($ 3,777 in 2011), ($5269 in 2012) and ($ 8,084 in 2013). All this cash was left by the end of December in three years excluding all the taxes and other expenses and it can be easily seen that company is becoming successful with every passing year and make enough of the profit.

Table of total cash used in the investing and financing activities of Amazon

Talking about the current assets of Amazon Company in 2012 were $ 21,296 and in the year of 2013 they were 24,625. With the addition of a year in the company, the assets also increased and it clearly shows how much the company was making profit by selling the products to their customers.

There is a complete list through which current assets are being listed and it includes:

·         Cash

·         Accounts receivable

·         Inventories

·         Prepaid insurance

Current assets of Amazon Company of 2012 and 2013 included four major things and their names are:

·         Cash and cash equivalent

·         Marketable securities

·         Inventories Accounts receivable and the other

Above mentioned points clearly shows that Amazon is the company which is following correct rules for making up the list of current assets.

Two largest current assets which were reported by the Amazon Company in a year 2012 and 2013 were:

1.      Cash and cash equivalents

2.      And the other one was Inventories

Table below shows the exact amount of the largest current assets of Amazon

Assets can be defined as anything which is owned by any business and it has some value and further can also be converted in the cash form. Total asset means that it is the sum all the current as well as non-current assets and it should be equal to sum of the liabilities and stakeholders in the combined form.

Total assets of Amazon Company in 2012 were $ 32,555 and in 2013 they were $ 40, 159.

Account payable is a set of money which is owed by a business to the suppliers which shows the liability on the sheet of company’s balance. Accounts payable of Amazon in year 2012 were        $ 13,318 and in 2013 $15,133.

Current liabilities is a combination of different things which includes the account payable, accrued and other expenses along with unearned revenue. So the total current liabilities of this company in a year 2012 were $19,002 and in 2013 they were $ 22,980.

As discussed above current liabilities contains many other different things in it and talking about the largest current liabilities of Amazon Company in 2012 and 2013 were:

1.      Accounts payable

2.      Accrued and many other expenses

Table below shows the amount of largest current liabilities of Amazon

Total liabilities is something different from the current liabilities and it is the aggregate debt as well as financial obligations which are being owed by any of the business to the single person and any of the organization at any specific time period.

Total liabilities and stockholder’s equity in Amazon varies. In 2012 they were $ 32,555 and in 2013 the amount was $ 40,159.

Net income is the outstanding amount of earnings which are left after all of the expenses have been deducted from the sales. In short net income is the final amount of profit earned by any company. Amazon is one of the most popular company and the net income of this company varies in three years and the exact amount is being listed in the table below:

            Amazon is the company that earns a great profit with every passing year and the same is the case when the analysis was being done of the year 2011, 2012 and 2013. Amazon is one successful company and working around the world. It is one of the most successful companies as it is working day and night to get improvement and make its customers happy and satisfied. As we all know this fact that with passing year, the reputation and standard of the company start to decline but Amazon is a company which is still making people happy and satisfied. Not only this but yes it is also increasing the ratio of customers by delivering them the best quality products.

They offer products at an amazing price and price doesn’t mean they deliver bad quality stuff. It comes in mind these days that maybe if the price is low quality will also be poor but this is the only point due to which this company is successful and making huge profits due to their quality and the way this company deals with their customers. I hope Amazon gets success with every passing year in future days as well and this will only be possible if they work hard the way they are.

References of Amazon

·         Perry, R., & Hendrick, S. D. (2012). The business value of amazon web services accelerates over time. White Paper, IDC.

·         Klaus, Philipp. "The case of Amazon. com: towards a conceptual framework of online customer service experience (OCSE) using the emerging consensus technique (ECT)." Journal of Services Marketing 27.6 (2013): 443-457.