Instructions: Obtain a copy of the 10-K annual report of Amazon.com filed to SEC for the fiscal year ended December 31, 2017. The report is available by searching for the 10-K form either on SEC’s EDGAR database of company filings or on the Company’s website in the section of SEC filings. Answer the following questions based on the information in the 2017 annual report of Amazon.com as well as your analysis and accounting knowledge. Some, but not all, of the information needed can be found in Item 1 (Business), Item 7 (Management’s Discussion & Analysis, MD&A), and footnotes to Financial Statements (Item 8) of the 10-K. Note 1 provides a summary of the company’s business and accounting policies. Required: 1. Would you classify Amazon.com as a service company, a merchandiser, a manufacturer, or a combination? Justify your conclusion using the information in the annual report. 2. What costs does Amazon.com explicitly classify as inventoriable (product costs)? 3. What activities are included in the value chain of Amazon.com? 4. What costs are regarded as fixed and variable costs, respectively, by Amazon.com? 5. The Sarbanes-Oxley Act requires managers to certify that the financial statements and disclosure are fairly presented in all material aspects and provide an assessment of their company’s internal controls. (a) Provide the titles and the names of the people who make such certification for the fiscal 2017 financial statements. On what date did they make the certification? (b) What external party performed an assessment of the effectiveness of Amazon’s internal control over financial reporting for fiscal year 2017? Identify the name of the firm and the location of its office (city and state). What’s their overall opinion on the effectiveness of Amazon’s internal control over financial reporting? 6. You are the controller of Amazon.com. You expect next year’s earnings to fall short of the earnings analysts are forecasting for your firm. List two steps you can ethically take to increase next year’s earnings. Also list two other actions that would increase next year’s earnings but would be unethical or even illegal.
Week 2 Assignment
In no more than 300 words, describe a current or past organizational issue or event you are or have experienced that you will examine through the structural, human resources, political and symbolic frames. You will use this organizational situation to prepare your Organizational Dynamics Analysis paper due in Week 6, and respond to discussion threads in weeks 2 – 5. Here are some examples of significant organizational events that could be the basis of an effective analysis. Very often a well-chosen situation is one that is very successful or a failure in achieving the desired goals and outcomes. Examples include:
In no more than 300 words, describe a current or past organizational issue or event you are or have experienced that you will examine through the structural, human resources, political and symbolic frames. You will use this organizational situation to prepare your Organizational Dynamics Analysis paper due in Week 6, and respond to discussion threads in weeks 2 – 5. Here are some examples of significant organizational events that could be the basis of an effective analysis. Very often a well-chosen situation is one that is very successful or a failure in achieving the desired goals and outcomes. Examples include:
Major change initiative
Merger or acquisition
Reorganization or restructuring
Large lay-off (10% or more of staff)
New technology or system
New product development and/or implementation
Important team effort
Controversial ethical dilemma
Merger or acquisition
Reorganization or restructuring
Large lay-off (10% or more of staff)
New technology or system
New product development and/or implementation
Important team effort
Controversial ethical dilemma
In describing the organizational situation, clearly and concisely identify the issue you will examine through the four-frame model. And in the description include the organization’s goals, key players (names optional), and any other relevant background information. For example, if the organizational issue is a major change initiative, what were the desired outcomes or goals, who were the key players and what was your role? This description can be used to describe the situation in your week 6 paper.