Amazon.com, Inc.'s financial statements are presented in Appendix D. Click here to view Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Click here to view Appendix E. (a) Based on the information contained in these financial statements, compute free cash flow for Amazon at December 31, 2016 and Wal-Mart for January 31, 2017. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000). Enter amounts in millions.) Amazon.com, Inc. Wal-Mart Stores, Inc. Free cash flow $ $ 9706 $ | Wal-Mart Stores, Inc. Consolidated Statement of Income Fiscal Years Ended January 31, 2017 2016 2015 $481,317 4,556 $478,614 3,516 $482,229 3,422 485,873 482,130 485,651 361,256 101,853 22,764 360,984 97,041 24,105 365,086 93,418 27,147 2,044 323 (100) 2,267 2,027 521 (81) 2,467 21,638 6,558 15,080 (Amounts in millions, except per share data) Revenues: Net sales Membership and other income Total revenues Costs and expenses: Cost of sales Operating, selling, general and administrative expenses Operating income Interest: Debt Capital lease and financing obligations Interest income Interest, net Income from continuing operations before income taxes Provision for income taxes Income from continuing operations Income from discontinued operations, net of income taxes Consolidated net income Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart Basic net income per common share: Basic income per common share from continuing operations attributable to Walmart Basic income per common share from discontinued operations attributable to Walmart Basic net income per common share attributable to Walmart Diluted net income per common share: Diluted income per common share from continuing operations attributable to Walmart Diluted income per common share from discontinued operations attributable to Walmart Diluted net income per common share attributable to Walmart Weighted average common shares outstanding: Basic Diluted Dividends declared per common share 2,161 300 (113) 2,348 24,799 7,985 16,814 285 20,497 6,204 14,293 14,293 (650) $ 13,643 15,080 (386) $ 14,694 17,099 (736) $ 16,363 $ 4.40 $ 4.58 $ 5.01 0.06 5.07 $ 4.40 $ 4.58 $ $ 4.38 $ 4.57 $ 4.99 0.06 $ 4.38 $ 4.57 $ 5.05 3,101 3,112 2.00 3,207 3,217 1.96 3,230 3,243 1.92 $ $ $ See accompanying notes. Wal-Mart Stores, Inc. Consolidated Statement of Comprehensive Income (Amounts in millions) Consolidated net income Less consolidated net income attributable to nonredeemable noncontrolling interest Consolidated net income attributable to Walmart Fiscal Years Ended January 31, 2017 2016 2015 $14,293 $15,080 $17,099 (650) (386) (736) 13,643 14,694 16,363 Other comprehensive income (loss), net of income taxes Currency translation and other Net investment hedges Cash flow hedges Minimum pension liability Other comprehensive income (loss), net of income taxes Less other comprehensive income (loss) attributable to nonredeemable noncontrolling interest Other comprehensive income (loss) attributable to Walmart Comprehensive income, net of income taxes Less comprehensive income (loss) attributable to nonredeemable noncontrolling interest Comprehensive income attributable to Walmart (2,882) 413 21 (397) (2,845) 210 (5,220) 366 (202) 86 (4,970) 541 (4,558) 379 (470) (69) (4718) 546 (4,172) 12,381 (190) $12,191 (4,429) (2,635) 11,448 (440) $11,008 10,110 155 $10,265 See accompanying notes. Wal-Mart Stores, Inc. Consolidated Balance Sheets As of January 31, 2017 2016 $ 6,867 5,835 43,046 1,941 57,689 $ 8,705 5,624 44,469 1,441 60,239 (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 assets and deferred charges Total assets 179,492 (71,782) 176,958 (66,787) 107,710 110,171 11,637 (5,169) 6,468 17,037 9,921 11,096 (4,751) 6,345 16,695 6,131 $198,825 $199,581 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 $ 1,099 41,433 20,654 921 2,256 565 $ 2,708 38,487 19,607 521 2,745 551 66,928 64,619 Long-term debt Long-term capital lease and financing obligations Deferred income taxes and other 36,015 6,003 9,344 38,214 5,816 7,321 Commitments and contingencies Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total Walmart shareholders' equity Nonredeemable noncontrolling interest Total equity Total liabilities and equity 305 2,371 89,354 (14,232) 77,798 2,737 317 1,805 90,021 (11,597) 80,546 3,065 83,611 80,535 $198,825 $199,581 See accompanying notes Wal-Mart Stores, Inc. Consolidated Statements of Shareholders' Equity and Redeemaole Noncontrolling Interest Capital in Common Stock Excess of Shares Amount Par Value Retained Earnings Accumulated Total Other Walmart Comprehensive Shareholders' Loss Equity Nonredeemable Noncontrolling Interest Total Equity Redeemable Noncontrolling Interest 3,233 $323 $2,362 $ (2,996) $ 1,491 $76,566 16,363 $76,255 16,363 $5,084 736 $81,339 17,099 - (4,172) (4,172) (546) (4,718) - (Amounts in millions) Balances as of February 1, 2014 Consolidated net income Other comprehensive loss, net of income taxes Cash dividends declared ($1.92 per share) Purchase of Company stock Purchase of redeemable noncontrolling interest Other (6,185) (950) (6,185) (980) LI (6,185) (980) (13) (1) (29) - - (1,491) 8 1 129 113 (731) 3,228 323 2,462 (17) 85,777 14,694 (7.168) 81,394 14,694 4,543 386 (618) 85,937 15,080 - - (4,429) (4,429) (541) (4,970) - Balances as of January 31, 2015 Consolidated net income Other comprehensive loss, net of income taxes Cash dividends declared ($1.96 per share) Purchase of Company stock Cash dividend declared to noncontrolling interest Other (6,294) (4,148) 11 (6,294) (4,256) 6,294) (4,256) (65) (6) (102) 1 - - (691) (632) (691) (1,195) (1) (8) (563) (555) 1,805 3,162 317 (11,597) 90,021 13,643 80,546 13,643 3,065 650 83,611 14,293 (2,635) (2,635) (210) (2,845) - Balances as of January 31, 2016 Consolidated net income Other comprehensive 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 - (120) (12) (6,216) (8,090) (174) (6,216) (8,276) (6,216) (8,276) - 11 (519) (249) (519) 487 740 (4) 736 3,048 $305 $2,371 $89,354 $(14,232) $77,798 $2,737 $80,535 $ See accompanying notes. Wal-Mart Stores, Inc. Consolidated Statements of Cash Flow Fiscal Years Ended January 31, 2017 2016 2015 $ 14,293 $ 15,080 $ 17,099 (285) 14,293 15,080 16,814 (Amounts in millions) Cash flows from operating activities: Consolidated net income Income from discontinued operations, net of income taxes Income from continuing operations Adjustments to reconcile income from continuing operations to net cash provided by operating activities: Depreciation and amortization Deferred income taxes 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 10,080 761 206 9,454 (672) 1,410 9,173 (503) 785 (402) 1,021 3,942 1,137 49 (19) (703) 2,008 1,303 (472) (569) (1,229) 2,678 1,249 166 31,530 27,389 28,564 (11,477) 635 246 (12,174) 570 671 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 Investment and business acquisitions, net of cash acquired Other investing activities Net cash used in investing activities (10,619) 456 662 (1,901) (2,463) (122) (79) (192) (11,125) (13,987) (10,675) Cash flows from financing activities: Net change in short-term borrowings Proceeds from issuance of long-term debt Payments of long-term 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 (1,673) 137 (2,055) (6,216) (8,298) (479) (90) (255) (18,929) 1,235 39 (4,432) (6,294) (4,112) (719) (1,326) (513) (6,288) 5,174 (3,904) (6,185) (1,015) (600) (1,844) (409) (16,122) (15,071) (452) (514) Effect of exchange rates on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (1,838) 8,705 (1,022) (430) 9,135 1,854 7,281 $ 6,867 $ 8,705 $ 9,135 Supplemental disclosure of cash flow information: Income taxes paid Interest paid 4,507 2,351 8,111 2,540 8,169 2,433 See accompanying notes