balance sheet

Balance Sheets:

A financial statement for a specific date that shows the total assets,liabilities, and capital of the business.

The Balance Sheet works with the growth of the companys earnings.
The net income that remains after paying dividends. It is reported on the balance sheet as the cumulative sum of each years retained earnings over the life of the business.

Retained earnings can be used to pay debt and future dividends, or can be reinvested into business activities.
Retained Earnings Growth is the percent increase/decrease of a companys retained net income over time. A company can use retained earnings to maintain current operations, or to invest in new ventures.
Generally speaking, retained earnings growth is accompanied by subsequent increases in sales and profitability.
If an Amazon retained earnings at the end of 2010 were 1,324.0 Million, and by the end of 2011 the amazon retained earnings increased to $1,924.0 million, the company experienced a retained earnings growth of 30%.
Retained Earnings has increase because Amazon.com has not Pay dividend, and we recommend; they do not pay dividend in the short term. They will focus in

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Retained Earnings on internal assessment growth, customer services and etc….
The more earnings retained the faster it grows and increases growth rate for future earnings.
Ratios:
The Current ratios show that amazon is in good position to meet its short – term obligations while maintaining stable.
The Profit Margins will temporarily decrease, but that is because Amazon is investing in the company.
The Total Asset Turnover ratio will go down because we recommend keeping higher inventories to meet customer demand.
The Earnings per Share will slightly decrease because we are funding growth by selling Stock, not issuing bonds.
Any numbers of combination debt/stock scenarios, such as 70/30% stock/debt or 30/70% debt/stock, is in an EPS/EBIT analysis.
The best financial alternative for the company is to limit debt to avoid paying interest. Hence, it is beneficial and imperative for amazon, to utilize stock in financing because the EPS values are slightly high compare to debt financing. The company need to raise 5,000 M to invest in research and development, technology, and expand into new markets globally. Maximize profit and reduce cost as much as possible.
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