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Amazon.com VS Overstock.com

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Amazon.com and Overstock.com are the two companies that will be researched in detail. Their financials will be comb through and synopsis of their financial status will be developed. These two companies are within the same industry of selling discounted products online. This is a tough industry to do well in and competition is tough. The e-commerce marketplace is intensely and savagely competitive. Their financials tell the story and show how lean and mean these companies must run. This paper is going to touch on briefly on each company, what they do, where they are financially, ratios between the two and their industry, and look at their cashflow.

The first company, Amazon.com, has been in business since 1995 when Jeff Bezos started his …show more content…

Overstocks balance sheet included 3 years of data: 2003-2005. The current assets included all entries they owned, such as cash, receivables and inventory. They also listed non-current assets, which was property, depreciation, and intangibles. Overstocks inc. liabilities included current short-term debt items, and the non-current liabilities included long-term debt items. The shareholders equity included preferred and common stock, which gave the company their total equity amounts.

Overstocks income statement included 3 year of date: 2003-2005. The total revenue increased 15% each year. The gross profit included all operating expenses and research development and was the totaled out after deducting cost of good sold by the revenue. Overstock included their operating Income and loss, which included all cost of income from the current operations, expenses and interest. The income statement also included the Net Income, which was what the company earned after the operating loss was calculated. Overstocks general ledger would include all assets, liabilities, sales and expenses and list all increases and decreases. Overstocks T account would include the company's depreciation, insurance, revenue, rent and investments. (Overstock.com, 2006)

When looking at Overstock.com's last 10-K statement for 2005, there was one accounting policy within the document on how to handle inbound freight changes alerts investors that there will be some

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