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 companys respective website. (a) Based on the information contained in these financial statements, compute free cash flow for each company. (Enter answers in millions. Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

need help calculating free cash flow. please show equations/work

Appendix E Specimen Financial Statements: Walmart Inc. The following are Walmart Inc.'s financial statements as presented in the company's 2019 annual report. The complete annual report, including notes to the financial statements, is available at the company's website. Walmart Inc. Consolidated Statements of Income Fiscal Years Ended January 31, (Amounts in millions, except per share data) , ) 2019 2018 2017 Revenues: Net sales $510220 S495.761 $181.317 Membership and other income 4,076 4.582 4.656 Total revenues 511.405 500.343 485.873 Costs and expenses: Cost of sales 385.301 373.396 301,256 Operating, selling, general and administrative expenses 107,147 106,510 101,853 Operating income 21,957 20,437 22,764 Interest: Debt 1,975 1,978 2,044 Capital lease and financing obligations 371 352 323 Interest income (217) (152) (100) Interest, net 2,129 2.178 2,267 Lass on extinguishment of debt 3,136 Other (gains) and losses 8.368 --- Income before income taxes 11,460 15,123 20,497 Provision for income taxes 4,281 4,000 6,204 Consolidated net Income 7,179 10,523 14.293 Consolidated net income attributable to noncontrolling interest (509) _{661) ( ( (6so) Consolidated net income attributable to Walmart $ 6,670 $ 9,862 $ 13.643 Net income per common share: Basie net income per common share attributable to Walmart Diluted net income per common share attributable to Walmart S S $ 2.28 $ 2.26 S S 3.29 3.28 4.40 4.38 Weighted-average common shares outstanding: Basic Diluted 2,929 2,945 2,995 3,010 3,101 3,112 $ 2.08 S 2.04 $ 2.00 Dividends declared per common share See accompanying routes, Walmart Inc. Consolidated Statements of Comprehensive Income Fiscal Years Ended January 31, (Amounts in millions) 2019 2018 2017 Consolidated net income $7,179 $10,523 $14,293 Consolidated net income attributable to noncontrolling interest (509) (661) (650) Consolidated net income attributable to Walmart 6,670 9,862 13,643 (3,027) 413 Other comprehensive income (loss), net of income taxes Currency translation and other Net investment hedges Cash flow hedges Minimum pension liability Unrealized gain on available-for-sale securities Other comprehensive income (loss), net of income taxes Other comprehensive (income) loss attributable to noncontrolling interest Other comprehensive income (loss) attributable to Walmart (226) 272 (290) 131 21 2,540 (405) 437 147 1,501 4,220 (169) 4,051 (113) 188 (397) 145 (2,845) 210 (2,635) 75 7,066 (321) Comprehensive income, net of income taxes Comprehensive (income) loss attributable to noncontrolling interest Comprehensive income attributable to Walmart See accompanying notes. 14,743 (830) $13,913 11,448 (440) $11,008 $6,745 Walmart Inc. Consolidated Balance Sheets As of January 31, 2019 2018 $ 6,756 $ 7,722 6,283 44,269 3,623 61,897 5,614 43,783 3,511 59,664 185,810 (81,493) 185,154 (77,479) 107,675 104,317 (Amounts in millions) ASSETS Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets Property and equipment: Property and equipment Less accumulated depreciation Property and equipment, net Property under capital lease and financing obligations: Property under capital lease and financing obligations Less accumulated amortization Property under capital lease and financing obligations, net Goodwill Other long-term assets Total assets LIABILITIES AND EQUITY Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Capital lease and financing obligations due within one year Total current liabilities 12,760 (5,682) 7,078 31,181 14,822 $219,295 12,703 (5,560) 7,143 18,242 11,798 $204,522 $ 5,225 47,000 22,159 428 1,876 729 77,477 $ 5,257 46,092 22,122 645 3,738 667 78,521 Long-term debt Long-term capital lease and financing obligations Deferred income taxes and other 43,520 6,683 11,981 30,045 6,780 8,354 Commitments and contingencies 288 Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total Walmart shareholders' equity Noncontrolling interest Total equity Total liabilities and equity See accompanying notes. 2,965 80,785 (11,542) 72,496 7,138 79,634 $219,295 295 2,648 85,107 (10,181) 77,869 2,953 80,822 $204,522 Common Stock Walmart Inc. Consolidated Statements of Shareholders' Equity Accumulated Other Retained Comprehensive Income Earnings (Loss) $90,021 $(11,597) 13,643 Shares Capital in Excess of Par Value $1,805 Amount Total Walmart Shareholders' Equity $80,546 13,643 Noncontrolling Interest $3,065 650 Total Equity $83,611 14,293 3,162 $317 (2,635) (2,635) (210) (2,845) (6,216) (8,090) (6,216) (8.276) (6,216) (8,276) (120) (12) (174) (519) 6 487 740 2,371 3,048 (519) (249) 2,737 661 (4) 89,354 9,862 305 736 77,798 9,862 (14,232) 80,535 10,523 - ,051 4,051 169 | (6,124) (7,975) (6,124) (8,204) (6,124) (8,204) (103) (10) (219) | (Amounts in millions) Balances as of February 1, 2016 Consolidated net income Other comprehensive income (loss), net of income taxes Cash dividends declared ($2.00 per share) Purchase of Company stock Cash dividend declared to noncontrolling interest Other Balances as of January 31, 2017 Consolidated net income Other comprehensive income (loss), net of income taxes Cash dividends declared ($2.04 per share) Purchase of Company stock Cash dividend declared to noncontrolling interest Other Balances as of January 31, 2018 Adoption of new accounting standards on February 1, 2018, net of income taxes Consolidated net income Other comprehensive income (loss), net of income taxes Cash dividends declared ($2.08 per share) Purchase of Company stock Cash dividend declared to noncontrolling interest Noncontrolling interest of acquired entity Other Balances as of January 31, 2019 See accompanying notes. 7 496 $2,648 (10) $85,107 486 $77,869 (687) 73 $2,953 (687) 559 $80,822 2,952 $295 $(10,181) (1,436) (1) 2,361 6,670 925 6,670 924 7,179 509 75 75 (188) (113) (6,102) (7,234) (6,102) (7,487) (6,102) (7,487) (80) (8) (245) LOI (488) (488) 4,345 562 8 (17) $80,785 546 $72,496 4,345 554 $79,634 2,878 $288 $2,965 $(11,542) $7,138 Walmart Inc. Consolidated Statements of Cash Flows Fiscal Years Ended January 31, 2019 2017 2018 $ 7,179 $10,523 $14,293 10,529 10,080 10,678 3,516 4,850 (499) 761 (Amounts in millions) Cash flows from operating activities: Consolidated net income Adjustments to reconcile consolidated net income to net cash provided by operating activities: Depreciation and amortization Unrealized (gains) and losses (Gains) and losses for disposal of business operations Deferred income taxes Loss on extinguishment of debt Other operating activities Changes in certain assets and liabilities, net of effects of acquisitions: Receivables, net Inventories Accounts payable Accrued liabilities Accrued income taxes Net cash provided by operating activities (304) 3,136 1,210 1,734 206 (368) (1,311) 1,831 183 (40) 27.753 (1,074) (140) 4,086 928 (557) 28,337 (402) 1,021 3,942 1,280 492 31,673 (10,344) 519 876 (10,051) 378 1,046 Cash flows from investing activities: Payments for property and equipment Proceeds from the disposal of property and equipment Proceeds from the disposal of certain operations Purchase of available for sale securities Payments for business acquisitions, net of cash acquired Other investing activities Net cash used in investing activities (10,619) 456 662 (1,901) (2,463) (31) (13,896) (14,656) (431) (24,036) (375) (77) (9,079) (53) 15,872 (3.784) (1,673) 137 (2,055) Cash flows from financing activities: Net change in short-term borrowings Proceeds from issuance of long-term debt Repayments of long-term debt Premiums paid to extinguish debt Dividends paid Purchase of Company stock Dividends paid to noncontrolling interest Purchase of noncontrolling interest Other financing activities Net cash used in financing activities (6,102) (7,410) (431) 4,148 7,476 (13,061) (3,059) (6,124) (8,296) (690) (8) (261) (19,875) (6,216) (8,298) (479) (90) (398) (19,072) (629) (2,537) Effect of exchange rates on cash, cash equivalents and restricted cash (438) 487 (452) Net increase (decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash at beginning of year Cash, cash equivalents and restricted cash at end of period 742 7,014 $ 7.756 (130) 7,144 $ 7,104 (1,747) 8,891 $ 7,144 Supplemental disclosure of cash flow information: Income taxes paid Interest paid See accompanying notes. 3,982 2,348 6,179 2,450 4.507 2,351 See accompanying notes to consolidated financial statements. 4,186 Amazon.com, Inc. Consolidated Statements of Operations (in millions, except per share data) Year Ended December 31, 2016 2017 Net product sales $94,665 $118,573 $141,915 Net service sales 41.322 59,293 Total net sales 135.987 177,866 Operating expenses: Cost of sales 88,265 111,934 Fulfillment 17,619 25,249 Marketing 7,233 10,069 Technology and content 16,085 22,620 General and administrative 2,432 3,674 Other operating expense, net 214 Total operating expenses 131,801 173.760 Operating income 4.106 Interest income 202 Interest expense (484) (848) Other income (expense), net 346 Total non-operating income (expense) (294) (300) Income before income taxes 3,892 3.806 Provision for income taxes (1.425) (769) Equity-method investment activity, net of tax (96) (4) Net income $ 2.371 $ 3,033 Basic earnings per share $ 5.01 $ 6.32 Diluted earnings per share $ 4.90 $ 6.15 Weighted-average shares used in computation of earnings per share: Basic 474 480 Diluted 484 493 See accompanying notes to consolidated financial statements. Amazon.com, Inc. Consolidated Statements of Comprehensive Income (in millions) 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) 533 (538) Net change in unrealized gains (losses) on available-for-sale debt securities: Unrealized gains (losses), net of tax of $(12), $5, and $o (39) Reclassification adjustment for losses (gains) included in "Other income (expense), net," net of tax of $0, $o, and $0 Net unrealized gains (losses) on available-for-sale debt securities (32) ( (9) Total other comprehensive income (loss) (262) 501 (547) Comprehensive income $2,109 $3,534 $ 9,526 See accompanying notes to consolidated financial statements 14899999999 Jan 099499918 1912 91 (17) llllo See accompanying notes to consolidated financial statements. Amazon.com, Inc. Consolidated Balance Sheets (in millions, except per share data) December 31, 2017 2018 ASSETS $ 31,750 9,500 17,174 16,677 75,101 61,797 14,548 11,202 $162,648 Current assets: Cash and cash equivalents $ 20,522 Marketable securities 10,464 Inventories 16,047 Accounts receivable, net and other 13,164 Total current assets 60,197 Property and equipment, net 48,866 Goodwill 13,350 Other assets 8,897 Total assets $131,310 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 34,616 Accrued expenses and other 18,170 Unearned revenue 5,097 Total current liabilities 57,883 Long-term debt 24,743 Other long-term liabilities 20,975 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-507 and 514 Outstanding shares-484 and 491 5 Treasury stock, at cost (1,837) Additional paid-in capital 21,389 Accumulated other comprehensive loss (484) Retained earnings 8,636 Total stockholders' equity 27,709 Total liabilities and stockholders' equity $131,310 See accompanying notes to consolidated financial statements. $ 38,192 23,663 6,536 68,391 23,495 27,213 5 (1,837) 26,791 (1,035) 19,625 43,549 $162,648 Amazon.com, Inc. Consolidated Statements of Stockholders' Equity (in millions) Common Stock Treasury Additional Paid- Amount Stock In Capital $5 $(1,837) $13,394 Shares Accumulated Other Comprehensive Income (Loss) $ (723) Retained Earnings $ 2,545 2,371 471 Total Stockholders' Equity $13,384 2,371 (262) (262) 6 1 829 829 = _ 477 2,962 17,186 2,962 19,285 (1,837) (985) 4,916 687 | . | | | | 687 3,033 VIII Balance as of January 1, 2016 Net income Other comprehensive income (loss) Exercise of common stock options Excess tax benefits from stock-based compensation Stock-based compensation and issuance of employee benefit plan stock Balance as of December 31, 2016 Cumulative effect of a change in accounting principle related to stock-based compensation Net income Other comprehensive income (loss) Exercise of common stock options Stock-based compensation and issuance of employee benefit plan stock Balance as of December 31, 2017 Cumulative effect of changes in accounting principles related to revenue recognition, income taxes, and financial instruments Net income Other comprehensive income (loss) Exercise of common stock options Stock-based compensation and issuance of employee benefit plan stock Balance as of December 31, 2018 TL 3,033 501 501 1 1 4,202 21,389 all 4,202 27,709 484 5 (1,837) (484) 8,636 (4) 916 912 II IT 10,073 10,073 (547) (547) 7 $5 5,402 $43,549 491 $5 5,402 $(1,837) $26,791 See accompanying notes to consolidated financial statements. $(1,035) $19,625 Appendix D Specimen Financial Statements: Amazon.com, Inc. Amazon.com, Inc. is the world's largest online retailer. It also produces consumer electronics-notably the Kindle e-book reader and the Kindle Fire Tablet computer-and is a major provider of cloud computing services. The following are Amazon's financial statements as presented in the company's 2018 annual report. The complete annual report, including notes to the financial statements, is available at the company's website. Amazon.com, Inc Consolidated Statements of Cash Flows (in millions) Year Ended December 31, 2016 2017 2018 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD OPERATING ACTIVITIES: , , : $16,175 S19,934 821,856 Net income 2.371 3.033 10,073 Adjustments to reconcile net income to net cash from operating activities: Depreciation of property and exuipment and other amortization, including capitalized content costs 8.116 15.341 Stock-based compensation 2,975 5,418 Other operating expense, net 160 274 Other expense (income), net (20) 219 Deferred income taxes (246) 441 Changes in operating assets and liabilities: Inventories (1,426) (3.583) (1.314) Accounts receivable. Det and other (3.436) (4.780) (4.615) Accounts payable 5.030 3,263 Accrued expenses and other 1,724 472 Uneamed revenue 1.955 1.151 Net cash provided by (used in) operating activities 17.203 30.729 INVESTING ACTIVITIES: Purchases of property and equipment (7,804) (11,955) (13,427) Proceeds from property and equipment incentives 1,067 2,104 Acquisitions, net of cash acquired, and other (116) (13.972) (2,186) Sales and maturities of marketable securities 4.577 8,940 Purchases of marketable securities (7.240) (7.10) Net cash provided by used in) investing activities (9.516) (27,084) (12,369) FINANCING ACTIVITIES: Proceeds from long-term debt and other 618 768 Repayments of long-term debt and other (327) (668) Principal repayments of capital lease obligations (3,860) (4.799) (7.449) Principal repayments of finance lease obligations (147) ( (327) ( Net cash provided by (used in) financing activities (3.716) (7.686) Foreign currency effect on cash, cash equivalents, and restricted cash (212) (351) Net increase (decrease) in cash, cash equivalents, and restricted cash 3.759 10,317 CASTI, CASI EQUIVALENTS, AND RESTRICTED CASTI, END OF PERIOD $19.934 $32.173 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on long-term debt $ go $ 854 Cash paid for interest on capital and finance lease obligations 206 575 Cash paid for income taxes, net of refunds 1,184 Property and equipment acquired under capital leases 5.704 10,615 Property and equipment acquired under build-to-suit leases 1,209 3.611 See accompanying notes to consolidated financial statements. 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