Amazon.com, Inc. Consolidated Statements of Cash Flows (in millions) 3,033 Year Ended December 31, 2016 2017 2018 $16,175 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD $19.94 $21.856 OPERATING ACTIVITIES Net Income 2,371 10,073 Adjustments to reconcile net income to net cash from operating activities: Depreciation of property and equipment and other amortization, including cap- talized content costs 8,116 11,478 15.341 Stock-based compensation 2,975 4,275 5,418 Other operating expense, net 160 202 274 Other expense (income), net (20) (292) 219 Deferred income taxes (246) (29) 441 Changes in operating assets and liabilities: Laventories (1.426) (3.583) (1,314) Accounts receivable, net and other (3.436) (4.780) (4,615) Accounts payable 5,030 7.100 3.263 Accrued expenses and other 1.724 283 472 Uneamed revenue 1.955 79 1.151 Net cash provided by (used in) operating activities 17,203 18,365 30,723 . INVESTING ACTIVITIES: Purchases of property and equipment (7.04) (11.955) (13,427) Proceeds from property and equipment Incentives 1,897 2,104 Acquisitions, net of cash acquired, and other (116) (13.972) (2,186) Sales and maturities of marketable securities 4,577 9,677 8,240 Purchases of marketable securities 12-240) (12.731) 7.100 Net cash provided by (used in) Investing activities {9,516) (27,084) (12.369) FINANCING ACTIVITIES Proceeds from long-term debt and other 61% 16,228 768 Repayments of long-term debt and other (327) (1.301) Principal repayments of capital caste obligation 3.60) (4.799) (7,449) Principal repayments of finance lease obligations 102 200) (317 Net cash provided by used in financing activities (3.716) 9,928 (7.686 Foreign currency effect on cash.cash equivalents, and restricted cash e2 713 331 Net increase (decrease in cash, Cash equivalents, and restricted cash 1759 1.922 10317 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OP PERIOD $19,914 SUM $12.173 SUPPLEMENTAL CASH FLOW INFORMATION Cash paid for interest on long term debit 290 532 5854 Cath puld for interest on capital and nance lease obligations 200 3 573 Cathalid for income taxes, net of refunds 92 14 Property and equipment acquired under capital 3,704 937 10,615 Property and equipment acquired under bull-to-wit 1,200 2541 2641 See accompanying notes to consolidated financial statements 1.067 $ 412 Amazon.com, Inc. Consolidated Statements of Cash Flows (in Millions) Year Ended December 31 2016 2017 $11,175 $19,04 2015 2.371 3,031 10,073 11.47 4215 15.11 116 2975 160 (20) 04 5.418 214 212 (290) 219 41 CSI (4.780) 7.100 12,114) 4615) 2263 03:436 Soso 1.734 1955 17.20 1.151 CASH CASH EQUIVALENTS AND RESTRICTED CASH. BEGINNING OF PERIOD OPERATING ACTIVITIES Net Income Mustments to reconcile income to let us from operating activities Depreciation of property and equipment and other amortization, including capi le content costs Stock based compensation Other operating expense.net Other expense (income) Deferred Income Changes is operatingssets and liabilit Inventores Accounts receivable netrand other Accounts payable Accrued expenses and other Umere Netcat provided by operating activities INVESTING ACTIVITIES Purchases of property and equipment Pred from property and en Anet of cash equired, and other Sales and maturities of marketableres Purch of marketable securities Net Cuh provided by used in investing activities PINANCING ACTIVITIES Proceeds from bote debt and other Repayments of long-term debt and other Principal payments of capital och Irincipal repayments of the obligatione NetCathrovided by Coin) financing activities To carency con cath, cash valents, we can Netice (case) in cash and restrictions CASAL CASH EQUIVALENTS AND ESTIUCTID CASCEND OF PERIOD SUPPLEMENTAL.CASH FLOW INFORMATION forintolongement Capultor interest on capital and finance lewebligations Casti paid forme de Property and entender Property and entenders (7.804 1.067 (116) 4577 7340 (9.515) (11.955) 1.299 (1972) 9:677 (12.731 (27,00 (1107) 2104 12.155) 40 100 (12.5 755 (1.101 (4700) 07:41) (2 0.100) 1147 OL 2,2 CAM 10 11 12 09 1 200 300 319 951 554 325 LI 3,704 APPENDIX D Specimen Financial Statements: Amazon.com, Inc. D-3 Amazon.com, Inc. Consolidated Statements of Operations (in millions, except per share data) Year Ended December 31, 2016 2018 $94,665 41,322 135,987 2017 $118,573 59.293 177,866 $141.915 90,972 232,887 88,265 17,619 7,233 111,934 25,249 139,156 34,027 16,085 2.432 10,069 22,620 3,674 214 13,814 28,837 4,336 167 296 131,801 4,186 Net product sales Net service sales Total net sales Operating expenses Cost of sales Fulfillment Marketing Technology and content General and administrative Other operating expense, 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 carings per share: Basic Diluted 173,760 4,106 202 100 (484) 90 (848) 346 220,466 12,421 440 (1.417) (183) 0.160 11,261 (1.197) 9 (294) 3,892 (1.425) (96) $ 2371 SS.01 $ 4.90 (300 3,806 (769) (0 $ 3,033 $ 6.12 $ 6.15 $ 10,073 $20.68 $ 20.14 480 482 474 484 493 500 See accompanying notes to consolidated financial statements, APPENDIX D Specimen Financial Statements: Amazon.com, Inc. D-5 Amazon.com, Inc. Consolidated Balance Sheets (in millions, except pershare data) December 31, 2017 2018 ASSETS $ 31,750 9,500 $ 20,522 10,464 16,047 13,164 60,197 48.866 13.350 8897 17,174 16,677 75,101 61,797 14,548 11,202 5162648 $131,310 $ 34,616 18.170 5.092 57,883 Current assets Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other Unearned revenue Total current 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, 50.01 par value: Authorized shares-5.000 Issued shares507 and 514 Outstanding shares-634 and 491 Treasury stock, at cost Additional puld-in capital Accumulated other comprehensive to Retained earning Total stockholdent equity Total liabilities and stockholde equity $ 38,192 23.663 6,536 68.391 23.495 27.213 24,74 20,975 3 5 (13 21.189 (1.2017) 26,791 (1035) (464 5616 27:200 5131-110 41.549 5162.64 Amazon.com, Inc. Consolidated Statements of Comprehensive Income (in millions) 533 9 Year Ended December 31, 2016 2017 2018 Net Income $2,371 $3,033 $10,073 Other comprehensive income (loss): Foreign currency translation adjustments, net of tax of $(49), $5, and $6 (279) (538) Net change in unrealized gains (losses) on available-for-sale debt securities: Unrealized gains (losses), net of tax of S(12), SS, and so (39) Reclassification adjustment for losses (gains) included in "Other Income (expense), net," net of tax of $0, 50, and so Net unrealized gains (losses) on available-for-sale debt securities (32) (9 Total other comprehensive income (loss) (262) (547) Comprehensive income $2,109 $3.534 $ 9,526 See accompanying notes to consolidated financial statements. (17) 17 501 View Policies Current Attempt in Progress Amazon.com, Inc.'s financial statements are presented in Appendix D. Click here to view Appendix D Financial statements of Walmart, Inc. are presented in Appendix E. Click here to view Appendix E. The complete annual reports of Amazon and Walmart, including the notes to the financial statements, are available at each compar respective website (a) Based on the information contained in these financial statements, compute free cash flow for each company. (Enter answers in milions. Show amounts that decrease cash flow with either a - signeg. -15,000 or in parenthesis eg. (15,000).) Amazon Walmart Free cash flow $ $ $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answ Amazon.com, Inc. Consolidated Statements of Cash Flows (in millions) 3,033 Year Ended December 31, 2016 2017 2018 $16,175 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD $19.94 $21.856 OPERATING ACTIVITIES Net Income 2,371 10,073 Adjustments to reconcile net income to net cash from operating activities: Depreciation of property and equipment and other amortization, including cap- talized content costs 8,116 11,478 15.341 Stock-based compensation 2,975 4,275 5,418 Other operating expense, net 160 202 274 Other expense (income), net (20) (292) 219 Deferred income taxes (246) (29) 441 Changes in operating assets and liabilities: Laventories (1.426) (3.583) (1,314) Accounts receivable, net and other (3.436) (4.780) (4,615) Accounts payable 5,030 7.100 3.263 Accrued expenses and other 1.724 283 472 Uneamed revenue 1.955 79 1.151 Net cash provided by (used in) operating activities 17,203 18,365 30,723 . INVESTING ACTIVITIES: Purchases of property and equipment (7.04) (11.955) (13,427) Proceeds from property and equipment Incentives 1,897 2,104 Acquisitions, net of cash acquired, and other (116) (13.972) (2,186) Sales and maturities of marketable securities 4,577 9,677 8,240 Purchases of marketable securities 12-240) (12.731) 7.100 Net cash provided by (used in) Investing activities {9,516) (27,084) (12.369) FINANCING ACTIVITIES Proceeds from long-term debt and other 61% 16,228 768 Repayments of long-term debt and other (327) (1.301) Principal repayments of capital caste obligation 3.60) (4.799) (7,449) Principal repayments of finance lease obligations 102 200) (317 Net cash provided by used in financing activities (3.716) 9,928 (7.686 Foreign currency effect on cash.cash equivalents, and restricted cash e2 713 331 Net increase (decrease in cash, Cash equivalents, and restricted cash 1759 1.922 10317 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OP PERIOD $19,914 SUM $12.173 SUPPLEMENTAL CASH FLOW INFORMATION Cash paid for interest on long term debit 290 532 5854 Cath puld for interest on capital and nance lease obligations 200 3 573 Cathalid for income taxes, net of refunds 92 14 Property and equipment acquired under capital 3,704 937 10,615 Property and equipment acquired under bull-to-wit 1,200 2541 2641 See accompanying notes to consolidated financial statements 1.067 $ 412 Amazon.com, Inc. Consolidated Statements of Cash Flows (in Millions) Year Ended December 31 2016 2017 $11,175 $19,04 2015 2.371 3,031 10,073 11.47 4215 15.11 116 2975 160 (20) 04 5.418 214 212 (290) 219 41 CSI (4.780) 7.100 12,114) 4615) 2263 03:436 Soso 1.734 1955 17.20 1.151 CASH CASH EQUIVALENTS AND RESTRICTED CASH. BEGINNING OF PERIOD OPERATING ACTIVITIES Net Income Mustments to reconcile income to let us from operating activities Depreciation of property and equipment and other amortization, including capi le content costs Stock based compensation Other operating expense.net Other expense (income) Deferred Income Changes is operatingssets and liabilit Inventores Accounts receivable netrand other Accounts payable Accrued expenses and other Umere Netcat provided by operating activities INVESTING ACTIVITIES Purchases of property and equipment Pred from property and en Anet of cash equired, and other Sales and maturities of marketableres Purch of marketable securities Net Cuh provided by used in investing activities PINANCING ACTIVITIES Proceeds from bote debt and other Repayments of long-term debt and other Principal payments of capital och Irincipal repayments of the obligatione NetCathrovided by Coin) financing activities To carency con cath, cash valents, we can Netice (case) in cash and restrictions CASAL CASH EQUIVALENTS AND ESTIUCTID CASCEND OF PERIOD SUPPLEMENTAL.CASH FLOW INFORMATION forintolongement Capultor interest on capital and finance lewebligations Casti paid forme de Property and entender Property and entenders (7.804 1.067 (116) 4577 7340 (9.515) (11.955) 1.299 (1972) 9:677 (12.731 (27,00 (1107) 2104 12.155) 40 100 (12.5 755 (1.101 (4700) 07:41) (2 0.100) 1147 OL 2,2 CAM 10 11 12 09 1 200 300 319 951 554 325 LI 3,704 APPENDIX D Specimen Financial Statements: Amazon.com, Inc. D-3 Amazon.com, Inc. Consolidated Statements of Operations (in millions, except per share data) Year Ended December 31, 2016 2018 $94,665 41,322 135,987 2017 $118,573 59.293 177,866 $141.915 90,972 232,887 88,265 17,619 7,233 111,934 25,249 139,156 34,027 16,085 2.432 10,069 22,620 3,674 214 13,814 28,837 4,336 167 296 131,801 4,186 Net product sales Net service sales Total net sales Operating expenses Cost of sales Fulfillment Marketing Technology and content General and administrative Other operating expense, 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 carings per share: Basic Diluted 173,760 4,106 202 100 (484) 90 (848) 346 220,466 12,421 440 (1.417) (183) 0.160 11,261 (1.197) 9 (294) 3,892 (1.425) (96) $ 2371 SS.01 $ 4.90 (300 3,806 (769) (0 $ 3,033 $ 6.12 $ 6.15 $ 10,073 $20.68 $ 20.14 480 482 474 484 493 500 See accompanying notes to consolidated financial statements, APPENDIX D Specimen Financial Statements: Amazon.com, Inc. D-5 Amazon.com, Inc. Consolidated Balance Sheets (in millions, except pershare data) December 31, 2017 2018 ASSETS $ 31,750 9,500 $ 20,522 10,464 16,047 13,164 60,197 48.866 13.350 8897 17,174 16,677 75,101 61,797 14,548 11,202 5162648 $131,310 $ 34,616 18.170 5.092 57,883 Current assets Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other Unearned revenue Total current 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, 50.01 par value: Authorized shares-5.000 Issued shares507 and 514 Outstanding shares-634 and 491 Treasury stock, at cost Additional puld-in capital Accumulated other comprehensive to Retained earning Total stockholdent equity Total liabilities and stockholde equity $ 38,192 23.663 6,536 68.391 23.495 27.213 24,74 20,975 3 5 (13 21.189 (1.2017) 26,791 (1035) (464 5616 27:200 5131-110 41.549 5162.64 Amazon.com, Inc. Consolidated Statements of Comprehensive Income (in millions) 533 9 Year Ended December 31, 2016 2017 2018 Net Income $2,371 $3,033 $10,073 Other comprehensive income (loss): Foreign currency translation adjustments, net of tax of $(49), $5, and $6 (279) (538) Net change in unrealized gains (losses) on available-for-sale debt securities: Unrealized gains (losses), net of tax of S(12), SS, and so (39) Reclassification adjustment for losses (gains) included in "Other Income (expense), net," net of tax of $0, 50, and so Net unrealized gains (losses) on available-for-sale debt securities (32) (9 Total other comprehensive income (loss) (262) (547) Comprehensive income $2,109 $3.534 $ 9,526 See accompanying notes to consolidated financial statements. (17) 17 501 View Policies Current Attempt in Progress Amazon.com, Inc.'s financial statements are presented in Appendix D. Click here to view Appendix D Financial statements of Walmart, Inc. are presented in Appendix E. Click here to view Appendix E. The complete annual reports of Amazon and Walmart, including the notes to the financial statements, are available at each compar respective website (a) Based on the information contained in these financial statements, compute free cash flow for each company. (Enter answers in milions. Show amounts that decrease cash flow with either a - signeg. -15,000 or in parenthesis eg. (15,000).) Amazon Walmart Free cash flow $ $ $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answ