3 As of December 11, 2018, we opened the filling facile in th Offers Office Why you (2) Physical) Fullt, data center and ther Tal (2) This chales 120 North America and 7 national stores as of December 31, 2018 16643 3301 Nath Ama 14,73 18136 734 North Am 373 10,90 6M7 Nuk America 72.3M 371343 2045 11177 North America International AWS 13 70,619 LAM 345,942 7376 Te Sconclude corporate facilities Stand foliis see allocated ang the segmen besed on sage and primarily relate to facilities that hold our technology into Set of Part 1, "Financial Stments and Supply C bed Mata's Down and of Find C Net sales Opening Net Dlated per day) Bavic Dilated Statements of Cash Flows Natched by and in ping Balance Sheets Tal on with the concland the of Pet, Tal and pptry Duta and the and Rs of Operations de so becoily indicative of f S 00 S 1 1231 . 135,947 S KIM 1 ITTMA S 4566 IXLAY 5 ZAZE 3. (240) 3 $ 2.37 $ S Mam 53) 1.30 5 T 432 " 20 3 002) 4 5 615 1 2014 462 467 434 477 454 17201 Deder 64.747 S 4 $ 14,794 TATT $ 2417 3 162641 Results of Operatin We have gained our operes e segmen North Amemes, lai and AWS Our reflect the operations of Whole Foods Makat of in Agt 2017. That the way Be Company evaluates its bases performiter and mange spations Set on of Pat, Fancial Stand Supplemmy Dus-Note 10-Se Not sales chale product and service lies Product sales repree them the sale of pechs and related dipping fees and digital media where we gave sales pily end wile wh inchak selay lated faint and thing fres AWS sales, Aman Prime membership fos aheng services and coin plotscription Net sales in mill Net Sple North Ame International AW Consolidad Your-year Pet North Americ Intentional AWS Coded Year-over-year Ptage Growth, eulling the effect of foreign exchange rate North America Amnational AWS Consolidated Net sales mis North America International AWS Consolidated 74.795 41,383 " 14136 1439 8596 12219 17,4 254 29% 34 25 21 47 31 " 21% 39% Ex - 31% 25 41 47 31 30 IN 100% 100% 100% Sales increased 31% in 2017 and 2018, compared to the comparable prior years Changes in fois cumcy exchange rates impacted net sales by S558) mition, $210 and 51.3 2016, 2017, 2018 For of the t od af Foreign Exchange Rates bele Opening Income (Low North America International AWS Consolidated Star Ended Bober 3 2361 3 1267 (12) BAD 0.342) 3,108 4331 329 41M AIM STA Operating expone Conf Makating Tahelgy and General and beinirati Other persing p Tool persing expenses Yanover Promag G Cont of sales Fal Making Gal and admirati Other petting expement Peces af Net Sales Cost of sales Fulfilme Marketing Technology and cont General and administrative Other operating exp 3416 27 111954 3 LIN 17619 25.249 14027 10.009 13,314 H065 22.620 2412 3634 4.330 167 214 173,200 230 225 31 IN 26 " 37% 41 51 28 345 649% 62.9% 13.0 142 5.3 5.3 127 12 18 2.1 0.1 03 B Free Card Flow Farch flecobfed by "Pash of pery and cop, net of proceeds bom progeny and signs which the included in a few mining The bam of tee cash flow so the most panic GAAP for "Net cash prided by (and in operating wives 2015, and 30 Phases of property and net of presh hom property di Free ho Net cash prided by (di) fuming acti 0310 0314) 317 11365 Free Cask Fee Lew Lee Principal pes Free cash flow less le pulpynt cash flooded by "Principal repryments of capital le lease principal pappate the chalpyments of ch for our pal and finance provided by cused mi operating for 2015, 2017, and 2018 Peches of property dent, at of pensom ty and equipment incentives Principal py Pipal payments of finance lease obligat Net apded by bed in fancing lips" and "Principal pay offence le obligations which are add in cash flow made ones. The following is a recitation of bore coth flow len leer principal paymns to the GAAP cash flow me Year Ended Deer M 3817 2 18365 30.12 (6335) (147) 6499 00 (1132) 1479 TAR 1200) 3306 ILA 1933 (764) (12. 0,7 3 1368 Free Cink Fle Len Fonce Le Principal Repam and Aged Under Capital Lea Free ch flow less fates leme principal payments and as squid seder capital laws is free cash flow redand by "Principal paymes of finance lease shigees" which is included in cash flow from fining activities and property and ented endr capial leases Is this man property and oquipment angered under capital leases is reflected as if these sets had been purchased with sash, shach us at the ces the sts have bees leased. The following in sreciati of the cash flow is fine lease principal repayments and as acquimd under capital less to the most sparable GAAP cash flow me, "Net ca proded by fond in operating scivities for 2016, 2017, and 201 Not such provided by (used in pating activities Purchases of property and equipment, set of grands thom property and mentionis Property and ppt soil and capital c Principal repayments of finance inae obligation 234 17200 6737) (5704) (147 4611 Saber M 18365 3,723 < (437) (200 L 1337) 1.441 Not as provided by (et in investing a Net cash provided fry (wed in) financing act (274) 9.928 S All of these free cash flows measures have limitations as they omit corn components of the overall cab women and do not present the residual cash flow available for dictionary expenditures. For angle, the menu at fe cash flows do not incorporate the portion of payments representing principal sedactions of debt or cash payments for bien antions Additimally, our mix of property and equipment options with out wrother financing options may change ever me The web it is important to view fine cash flows mees only as a complement to our entire consolidated states of cash flows. (1230) (3,756) 5 CUM 29 TableGustent Effect of Foreign Exchange Rate lefonation regarding the effect of foreign exchange rates, versus the US Dollar, on our net sales, operating expenses, and operating income is provided to show reported period opening tests had the reign exchange rates remained the same these in effect in the comparable prior year The effect on our net sales, operating expenses, and operating income from changes in our foreign exchange rates veus the US. Dellar is as follows on millions Net Operating expenses Opting M 11 KIN ITTAN 21104 20 420 LEA M Obe fixed Jam HANN DIE KORRAKY BLIR Dess, ang principal cash by expoody and the sighted as of Decoder 11. 343 % Li 12 414 I 13315 100 "N H 43 N 30% 1121 100% 1915 2415 23% in 300% " 1875 M 4 2605 ZAN 3.32% JUN - 20061 LX34 " As of December 31, 2015, we had $25 billion of debe, including the set portion, parity cumming of the following fid redah on millon 200 News dhe as December 3, 2019 100% Notes de os Aug 21, 2820 3.300% Notes or in Dember 201 2500 Notes de c November 29, 2012 2400% Nit de February 21, 2023 100% Netes dar on August 22, 2034 durum December 5, 2004 5.200% Notes due on December 3, 2009 dur on August 22, 2027 4300% Noter der n December 5, 2014 3.875% Nome da on August 22, 201 4.950 Notes due in December 5, 2044 4050% Na dar on August 22, 2047 250% Notes da un Aug 22, 2017 1000 L 190 L 330 1250 1300 1300 1.250 CAMC-CAME YOUIVALENT CANDERERTEVED COOL BENSING PER OPERATING ACTIVENES Actual and or Ud INVENTING ACT FINANCING A CTIVITIES Repement of long dt ande CAME CASH EQUIVALENTS, AND RESTRICTED CASH END OF PIRKID SUPPLEMENTAL CASHFLOW STORMATION Copsting te do Calpales of and hputy and quiet and and optim Property and peace be wi CONSOLIDATED STATEMENTS OF CASH FLOWS KIN 2th 3401 11341 2 421 KAN DO 31 ON BUDY OR 100 1754 41 W JOAN G www 1 007) HOMY 0.34 19341 3130 (0317 15 200 NOA 20 319 $12 1200 MART 541 Seaning notes to unliant facial am product sales et service sales Cost of cale Ful Marketing Technology and content General and adm Other operating expe Total operating exp crest incame er income (expen Tatal non-operating income expen one before insame ass vine e income taxes earnings per share ated camings por share ghodavage dad in computation of egs per share Delated (in mille, exopt per share data) 2016 Year Ended 31 2017 118373 14LMES 41,322 135,967 59.293 177366 72 230 25 111904 119,156 12419 25.249 14027 7,233 10,069 11314 16,085 22628 2337 2,432 3.624 431 167 214 200 175,768 220 4,186 4.106 12421 100 200 4401 (484) (848) (LAT) 90 146 (2) (300) (1,360 1,392 X805 11,36 (1425) CW9y (96) 2371 0,031 100 632 21 4.90 6.15 30.14 447 500 476 414 Serpanying to coldated financial states CANH, CAMI DOLIVALENTS AND RESTRICTED CASH BELIDNING OF PERIOD OPERATING ACTIVITIES Suckdompetti Det Cheng in png INVESTING ACTIVITIE Pluies of pop Action of hind, and FINANCING ACTIVITIES Proceeds g Repets of the Pncipal paymes of dance home obligatio Fy effect sad, cash opalam, and mirada CASIL CASE EQUIVALENTS, AND RESTRICTED CAS END OF PERIOD SUPPLEMENTAL CASH FLOW INFORMATION Cash pot for ren Cad paid for intet e rapital al n Cash paid free tases, wat of no Property and Popery and per anpired under capital le tapered under build Cader umm 195 SATH 4219 SAIK 201 ONE 441 SLAN B Ha 100 42 71 11201 130 30.21 709 4 UNIT La (0,2) CIM AXT 134 055160 11230W 618 Ma (327) ( 47) 147 1700 0,4 22 M 1,350 2LA6 29 319 m 412 967 1314 5304 1300 MAI Taffic Commut Opting Cof F Marking Thegy and Orig Tils Provisione come late Dadang jer du Weighed age shares dip of pet she D AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS M 2018 M M 41,323 INSTE 19291 14 942 REACT 343 1749 2534 34321 120 34 105 2330 2412 164 167 214 294 . AIM 430 100 (44) O cho 4 (w) 11.241 Ham 1311 TA 101 633 49 4.15 214 474 41 AM 433 Sex accompanying to coded financial stat Other compreheniveles Net change slid geim ( on available-finals dels seu AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Uretinal Reclastication fun of S12 Stand for less) inchadad is "Ode ce expenses of as 130, M, and So Tial thrive inco Cop See accompanying notes to comelidated financial statemen Your Fadder M 2 2,371 1,813 MU 12791 09 07 " 17 (32) (4) 101 (547 3334 9.53 ASSETS AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS 301 Cu Marketable su And Tinal Property and ment 20,922 104 7 0,04 17.174 13.164 171 LIN $1,790 1139 143 Other K 11.30 T LILMS 426 LIABILITIES AND STOCKHOLDERS EQUITY C Accounts payable And exper Long-te Other Imp mabditis Command eines (Note 7 Stockholder equity Primed dock, 30.01 par Autoed shares-500 Issed analing shuns- Common stock, 5001 par val Authorized shams bound shares Otanding -484491 Addonil ped-it capital Accumulated other compechene Retained caring Til stockholdes opty Tinal Jubilities and stockholders' equity See paying to coated al 16179 14392 23,645 ATM 17 24,741 20 3 1337 HA 2138 36,791 (101) RA 41549 TRHE Takut Comm Belect as of January 1, 201 Other emph bek o Netin Ober compri Other spi AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY 471 Balance of Deveer 31, 2014 491 S 0134 2345 2371 2,171 66 O 1 2913 129 1962 1,031 103 301 4312 4.302 (187) 21,349 1404) XAM 27.70 956 912 134 (547) 1,402 (133) $ 34,7 See accompanying notes to cooldad financial stat 40 WA21 Ca Lester Money Squity man Level For Cop Datical Came Carl My Ledes US pt and any Copie dab Ahacked we Other fined La Komal ca vach ival, and make it) Tel ca ca parktable sc CHE ME 11343 23 42 11.343 AV CH AME 4361 ATWE m 4211 66 SOLKOW A 29 123 B the 915 E TAM MY 09 th 14 " 4137 147 41876 146 412M The wing table prende a conciliation of the amount of cash cash val and ected cash reported within the odd balance sheets to the stal of the each show the contents of f Cash and cash op Roided concluded in as a Ricted cash made in r Test cash, cash ajoivalents, and roused cash shown the comodated statements of cab Dows Note 3-PROPERTY AND EQUIPMENT Propony and aquipment, stat, comind of the following mill) Ciproperty and pet(1) Land and buildings Contra in prog Gress property and Total accumulated depreciation and (1) Total property and ppt 28522 1329 3 21356 Dender 11.350 21396 $ 31741 43344 36,391 2,438 2371 AT AMI 7134 95770 31.790 33,935 41.366 61.797 Pr The aggregate the peces Purchase Price Cash pod not of cash Allocati Coodwill Intangible (TE Mate Comet heed Technology-banal Created Deferred Other Limp debe Deferred tax liabilities Oday abilities al 22 S December H. LLAW TAL 104 LABE 1339 440 15 245 14 2047 1677 3 1,410 17 117 10 131 6 11365) ( an 11340 pa 105 13963 LAS The god of head come in pls elated to aspecte imponen in egy pen and finity wells qualify for region The pill of the stops in plyt dette be in pe The blowing fim an still obat and suferings and peter with serta ge in 2007 and 2018 by wames O Goodwill-Domber New ap Ot Goodell-Der 12 Primary changing changes Mark Co Coord A Ap G 2,456 241 INT RIS E 15) 12.191 115) 1210 www. Cauldad Low IN 130 W al 1150 1221 De 34,4 Not G 1400 2342 (233) 1430 (224) 1206 212 123 om 564 clo 229 44 1330 E24 4.300 154 (T) has the igal cot and anal anortion of fully untical inteles bangible as have estmed useful lives of between me and wasty-five you Action expense for pind tanphic was $287 nullin, 3306 milion, and $475 in 2016, 2017, and 2018 Expesso eure a spese of and imaghles as of Desember 31, 2018 is as fibres mill Year Ended Desember 31. 2019 2009 2020 2022 3023 There 412 250 2317 4,05 Tying It All Together Case F:9-1 Before you begin this assignment, review the Tying It All Together feature in the chapter. It will also be helpful if you review Amazon.com, Inc.'s 2018 annual report https://www.sec.gov/Archives/edgar/data/1018724/000101872419000004/0001018724-19-000004-index.htm). Amazon.com, Inc. opened its virtual doors in July 1995. The business serves customers through its retail Web sites and physical stores and focuses on selection, price, and convenience. The company sells hundreds of millions of unique products through its Web site. Amazon.com, Inc. also manufactures and sells electronic devices, including Kindle e-readers, Fire tablets, and Echo devices. In addition, Amazon.com, Inc. offers Amazon Prime, a membership program that includes unlimited free shipping and instant streaming of thousands of movies and TV episodes. Requirements s 1. What was the amount of net Accounts Receivable as of December 31, 2018? As of December 31, 2017? 2. Review the notes to the financial statements and read the note labeled Accounts Receivable, Not and Other in Note 1-Description of Business and Accounting Policies. How does Amazon.com, Inc. estimate losses on receivables? When are receivables written off? 3. Review the notes to the financial statements and read the note labeled Accounts Receivable, Net and Other in Note 1-Description of Business and Accounting Policies. What was the amount of Allowance for Doubtful Accounts as of December 31, 2018? As of December 31, 20177 4. Using the information from requirements 2 and 3, determine the gross amount of Accounts Receivable as of December 31, 2018. As of December 31, 2017. 5. Review the notes to the financial statements and read the note labeled Accounts Receivable, Net and Other in Note 1-Description of Business and Accounting Policies. What was the amount of additions to the allowance for doubtful accounts for 2018? What was the amount of deductions to the allowance for doubtful accounts for 2018? Draw a T-account that details the changes in the Allowance for Doubtful Accounts account for 2018. What would additions charged to the allowance for doubtful accounts represent? What would deductions from the account represent