1a: Provide the total cash flow for operating activities, investing activities and financing activities from the statement of cash flow the years 2020 and 2019 1b: Provide one operating activity amount, investing activity amount, and financing activity amountfrom the statement of cash flow the years 2020 and 2019 1c: compute the total debt to asset ratio from the statement of cash flow the years 2020 and 2019

2: Identify the control features of a bank account, match the letter to each item where it would be located and treated in the bank reconciliation process

This is the statement of cash flow provided

Problem One (Statement of Cash Flows Analysis) 1a: Provide the Total cash provided or used by Operating Activities, Investing Activities, and Financing Activities from the Statement of Cash Flows for the years 2020 and 2019. Compute the increase or (decrease) between these years. Statement of Cash Flow Amounts 2020 2019 Increase (Decrease) (a - b) a (b) Cash provided or used by Operating Activities Cash provided or used by Investing Activities Cash provided or used by Financing Activities Tip: Get the Cash provided or used for Operating Activities, Investing Activities, and Financing Activities from your group's company statement of cash flows to compare for 2020 and 2019. 1b: Provide one Operating Activity amount, one Investing Activity amount, and one Financing Activity amount from the Statement of Cash Flows for the years 2020 and 2019. Compute the increase or (decrease) between these years. Statement of Cash Flows Accounts 2020 2019 Increase | (Decrease) (a - b) (a) (b) Describe amount from Operating Activities he Describe amount from Investing Activities he Describe amount from Financing Activities he Tip: Choose an amount from the operating activities, investing activities and the financing activities from your group's company statement of cash flows to compare for 2020 and 2019. 1c: Compute the Total Debt to Total Assets Ratio for the years 2020 and 2019. Compute the increase/(decrease) between these years. Solvency Ratio 2020 2019 Increase (Decrease) (a - b) (a) (b) Total Debt to Total Assets Ratio Problem Two (Identify the Control Features of a Bank Account) Letter Bank Reconciliation Process A B Add to the cash balance per books Deduct from the cash balance per books Add to the cash balance per bank Deduct from the cash balance per bank Does not affect the bank reconciliation D E Match the letter to each item, where to the amount would be located and treated in the bank reconciliation process. Letter 1. Seven checks for a total of $48,000.00 were outstanding at the end of September and cleared in October and were included with the October bank statement. 2. A personal deposit made by the owner to their personal account for $5,000 was credited to the company account. 3. Included with the bank statement was a check from Saul Goodman for $13,000 stamped "non-sufficient funds". 4. The daily deposits of October 30th and October 31st for $17,500 and $13,250, are not included in the bank statement as of October 31st. 5. Three checks, #7305, #7307, #7313 for a total of $28,575, did not clear the bank during the month of October. a. Provide an explanation for the financing activities on the Statement of Cash Flows: 1- Describe the "One" Operating Actvity amount, the "One" Investing Activity amount, and the "One" Financing Activity amount that you listed above from the Statement of Cash Inflows. 2- Based on your results for 1a, 1b, and 1c for the years 2020 and 2019, explain two reasons why the company's solvency status (cash flow ability to make payments over the long-term) has improved or become worse. 3- Make sure to include the details of your computations for your ratio. b. Why would you recommend for the company to implement either "Independent Internal Verification" OR "Human Resource Controls" as an Internal Control: 1- Describe the purpose of the internal control. 2- Describe the benefits of the internal control. 3- Describe what "weaknesses" this internal control will help prevent. 4. Why would you recommend for the company to implement this internal control? AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) 2020 $ Year Ended December 31, 2018 2019 141,915 $ 160,408 $ 90,972 120,114 232,887 280,522 215,915 170,149 386,064 Net product sales Net service sales Total net sales Operating expenses: Cost of sales Fulfillment Technology and content Marketing General and administrative Other operating expense (income), net Total operating expenses Operating income Interest income Interest expense Other income (expense), net Total non-operating income (expense) Income before income taxes Provision for income taxes Equity-method investment activity, net of tax Net income Basic earnings per share Diluted earnings per share Weighted average shares used in computation of earnings per share: Basic Diluted 139,156 34,027 28,837 13,814 4,336 296 220,466 12,421 440 (1,417) (183) (1,160) 11,261 (1,197) 165,536 40,232 35,931 18,878 5,203 201 265,981 14,541 832 (1,600) 203 (565) 13,976 (2,374) (14) 11,588 $ 23.46 $ 23.01 $ 233,307 58,517 42,740 22,008 6,668 (75) 363,165 22,899 555 (1,647) 2,371 1,279 24,178 (2,863) 16 21,331 42.64 9 $ $ 10,073 $ 20.68 $ 20.14 $ $ 41.83 487 500 494 504 500 510 AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2020 2019 S 36,092 $ 18,929 20,497 20,816 96,334 72,705 25,141 14,754 16,314 225,248 $ 42,122 42,274 23,795 24,542 132,733 113,114 37,553 15,017 22,778 321,195 S S ASSETS Current assets: Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Operating leases Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other Unearned revenue Total current liabilities Long-term lease liabilities Long-term debt Other long-term liabilities Commitments and contingencies (Note 7) Stockholders' equity: Preferred stock, $0.01 par value: Authorized shares - 500 Issued and outstanding shares - none Common stock, $0.01 par value: Authorized shares 5,000 Issued shares - 521 and 527 Outstanding shares - 498 and 503 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive income (loss) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 47.183 $ 32,439 8,190 87,812 39.791 23,414 12,171 72,539 44,138 9.708 126,385 52,573 31,816 17,017 5 (1,837) 33,658 (986) 5 (1,837) 42,865 (180) 52,551 93,404 321,195 31,220 62,060 225,248 $ $ AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Year Ended December 31, 2019 2018 2020 S 21,856 $ 32,173 $ 36,410 10,073 11,588 21,331 15.341 5,418 21,789 6,864 164 (249) 796 25,251 9,208 (71) (2,582) 274 219 441 (554) (1,314) (4,615) 3,263 472 1,151 (3,278) (7,681) 8,193 (1,383) 1,711 (2,849) (8,169) 17,480 5,754 1,265 66,064 30,723 38,514 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD OPERATING ACTIVITIES: Net income Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other Stock-based compensation Other operating expense (income), net Other expense (income), net Deferred income taxes Changes in operating assets and liabilities: Inventories Accounts receivable, net and other Accounts payable Accrued expenses and other Unearned revenue Net cash provided by (used in) operating activities INVESTING ACTIVITIES: Purchases of property and equipment Proceeds from property and equipment sales and incentives Acquisitions, net of cash acquired, and other Sales and maturities of marketable securities Purchases of marketable securities Net cash provided by (used in) investing activities FINANCING ACTIVITIES: Proceeds from short-term debt, and other Repayments of short-term debt, and other Proceeds from long-term debt Repayments of long-term debt Principal repayments of finance leases Principal repayments of financing obligations Net cash provided by (used in) financing activities Foreign currency effect on cash, cash equivalents, and restricted cash Net increase (decrease) in cash, cash equivalents, and restricted cash CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD (13,427) 2,104 (2,186) 8,240 (7,100) (12,369) (16,861) 4,172 (2,461) 22,681 (31,812) (24,281) (40,140) 5,096 (2,325) 50,237 (72,479) (59,611) 886 (813) 182 (155) (7,449) (337) (7,686) (351) 10,317 32,173 1,402 (1,518) 871 (1,166) (9,628) (27) (10,066) 70 4,237 6,796 (6,177) 10,525 (1,553) (10,642) (53) (1,104) 618 5,967 42,377 S 36,410 S