Based on 2021 Annual Report for Amazon —
What percentage of total assets does inventories represent for each of the last three years?
What inventory costing method is applied to Amazon inventories?
1) What do you think motivated this choice?
2) If the company uses LIFO, how much higher or lower would net income before taxes be
if it had used FIFO or a similar method instead?
What is the effect of the change in inventories on cash flows from operating
activities for the most recent year (i.e., did the change increase or decrease
operating cash flows)? Explain your answer in details and show your calculations.