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A common size income statement presents each item as a percentage of total sales or revenue, facilitating the analysis of a company's cost structure over time. For instance, Amazon's general and administrative (G&A) expenses remained around 1.9% of net sales from 2018 to 2021, indicating that 1.9 cents of every sales dollar went towards these expenses. Additionally, the statement reveals profit margins; in 2021, Amazon generated 5.3 cents of operating income per sales dollar. It also highlights significant fluctuations; for example, Amazon's non-operating revenue, usually a small percentage, rose to 3.1% in 2021 due to an $11.8 billion gain from its investment in Rivian.
