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M12-12. Forecast an Income Statement Amazon.com reports the following income statements. 12 Months Ended December 31 Consolidated Statements Of Operations ($ in Millions ) 2015 2014 2013 ..................... $ 79,268 27,738 107,006 $70.080 18,908 88,988 $60,903 13,549 74,452 Net product sales. ... Net service sales ........... Total net sales. .... ................... Operating expenses: Cost of sales. ....... Fulfillment ........................ ........ Marketing ............... Technology and content..... General and administrative. ........ Other operating expense, net. ..... Total operating expenses .. Income from operations .... Interest income. . Interest expense. .... Other income (expense), net ........... Total non-operating income (expense). Income (loss) before income taxes.......... Provision for income taxes................ Equity-method investment activity, net of tax .. Net income (loss) ......... 71,651 13,410 5,254 12,540 1,747 171 104,773 2,233 50 (459) (256) (665) 1,568 (950) 62,752 10,766 4,332 9,275 1,552 133 88,810 178 39 (210) (118) (289) (111) (167) 54,181 8,585 3,133 6,565 1,129 114 73,707 745 38 (141) (136) (239) 506 (161) (71) $ 274 : : : : : (22) 37 596 $ (241) . Forecast Amazon's 2016 income statement assuming the following income statement relations ($ in millions). All percentages (other than sales growth and provision for income taxes) are based on percent of net sales. ......................, Net product sales growth... 15% Net service sales growth ....... 40% Cost of sales. ........ 67.0% Fulfillment.... 12.5% Marketing ........ 4.9% Technology and content. ....... 11.7% General and administrative. ......... 1.6% ........................ Other operating expense, net.............. No change Interest income. ......................... $60 Interest expense........ ....... $520 Other income (expense), net ................. No change Income tax expense (% pretax income). ........ 38% Equity-method investment activity, net of tax ...... ....... No change ................... .............. leslex e lse

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