I need an explanation for this Accounting question to help me study.
Using Excel, prepare a horizontal and a vertical analysis of the income statement for Amazon for the year ended December 31, 2018. You should actually use the same excel file that you created for the balance sheet tools last week. (I have attached the completed Horizontal and Vertical BS and added the information that need to be used for the Horizontal and Vertical IS) There is no need to download this data again. Identify three areas from the Vertical analysis and three areas from the Horizontal analysis that you think are worthy of additional analysis. You can indicate these directly in the Excel spreadsheet. You don’t have to complete an analysis of these items, just note why you think they need additional analysis. Also, make sure to format your Excel tools in a professional way that should help with your analysis and in presenting your tools to another person or group of people. Please see the videos that follow this assignment tab for help in preparing these tools.
Using the instruction that follow, prepare ratio calculations using the Google Sheets http://tinyurl.com/xbrlratios tool. Your ratios should include Amazon as the main company, and you should select two new companies (other than Walmart and Kroger from the videos) as your comparable companies. You will need to share the link to your Google Sheet (as noted in the video) to the assignment tab as your submission for the ratios. Indicate three items that you think are worthy of additional analysis as a result of these calculations. You can include these in the Google Spreadsheet.
I have also attached PowerPoint slides for instructions on the ratio part and an income statement powerpoint.
Please follow directions on the IS and ratio calculations!