Calculate the gross profit percentage for Amazon for 2020 and 2021.

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Chapter 7 Homework
Due by 11:59 p.m November 7th on Blackboard

Use the Securities Exchange Commission (SEC) EDGAR database (https://www.sec.gov/edgar/searchedgar/companysearch.html)
You may submit a word document or PDF with your solutions. Please format your document title “Student Name – Chapter 7 Homework” – use your name.

Download or view the 2021 annual financial statements for Amazon from SEC EDGAR and answer the following questions:

1. Calculate the gross profit percentage for Amazon for 2020 and 2021.
2. How much inventory does Amazon carry on its balance sheet? What percentage of Amazon’s total assets does inventory represent in each presented?
3. Compute the inventory turnover and days’ sales in inventory for 2020 and 2021.
4. Is Amazon inventory management improving?
5. What inventory costing method does Amazon use?

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