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 company's 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). Amazon.com, Inc. Consolidated Statements of Cash Flows (in millions) 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 of property and equipment and other amortization, including capitalized content costs Stock-based compensation Other operating expense, 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 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 long-term debt and other Repayments of long-term debt and other Principal repayments of capital lease obligations \begin{tabular}{ccc} (1,426) & (3,583) & (1,314) \\ (3,436) & (4,780) & (4,615) \\ 5,030 & 7,100 & 3,263 \\ 1,724 & 283 & 472 \\ 1,955 & 738 & 1,151 \\ \hline 17,203 & 18,365 & 30,723 \end{tabular} Drinainal manarmanta af fingnanlanaarabliantiano \begin{tabular}{ccc} (7,804) & (11,955) & (13,427) \\ 1,067 & 1,897 & 2,104 \\ (116) & (13,972) & (2,186) \\ 4,577 & 9,677 & 8,240 \\ (7,240) & (12,731) & (7,100) \\ \hline(9,516) & (27,084) & (12,369) \end{tabular} Repayments of long-term debt and other Principal repayments of capital lease obligations Principal repayments of finance lease 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 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on long-term debt Cash paid for interest on capital and finance lease obligations Cash paid for income taxes, net of refunds Property and equipment acquired under capital leases Property and equipment acquired under build-to-suit leases See accompanying notes to consolidated financial statements. Net product sales Net service sales Total net sales Amazon.com, Inc. Consolidated Statements of Operations (in millions, except per share data) Operating expenses: CostofsalesFulfillmentMarketingTechnologyandcontentGeneralandadministrativeOtheroperatingexpense,netTotaloperatingexpensesOperatingincomeInterestincome88,26517,6197,23316,0852,432296167173,760131,8014,186100111,93425,24910,06922,6203,67429621412,421220,4664,106202139,15634,02713,81428,8374,336106 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 See accompanying notes to consolidated financial statements. Amazon.com, Inc. Consolidated Statements of Comprehensive Income (in millions) Net income Other comprehensive income (loss): Foreign currency translation adjustments, net of tax of \$(49), \$5, and \$6 Net change in unrealized gains (losses) on available-for-sale debt securities: Unrealized gains (losses), net of tax of \$(12), \$5, and \$o Reclassification adjustment for losses (gains) included in "Other income (expense), net," net of tax of \$o, \$o, and \$o Net unrealized gains (losses) on available-for-sale debt securities Total other comprehensive income (loss) Comprehensive income See accompanying notes to consolidated financial statements. (279) 533 (538) Amazon.com, Inc. Consolidated Balance Sheets Amazon.com, Inc. Consolidated Statements of Stockholders' Equity (in millions) Amazon.com, Inc. Consolidated Balance Sheets (in millions, except per share data) December 31, ASSETS 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 2017 2018 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: \begin{tabular}{lrr} Accounts payable & $34,616 & $38,192 \\ \hline Accrued expenses and other & 18,170 & 23,663 \\ Unearned revenue & 5,097 & 6,536 \\ \hline Total current liabilities & 57,883 & 68,391 \\ Long-term debt & 24,743 & 23,495 \\ Other long-term liabilities & 20,975 & 27,213 \end{tabular} 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 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 4775 17,1862,962 (985) 4,91619,2852,962 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 4845 (1,837)21,3894,202 Cumulative effect of changes in accounting principles related to 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 491 8,63627,7094,202 See accompanying notes to consolidated financial statements. Walmart Inc. Consolidated Statements of Income Fiscal Years Ended January 31, (Amounts in millions, except per share data) Revenues: Net sales Membership and other income Total revenues 201920182017 Costs and expenses: Cost of sales Operating, selling, general and administrative expenses Operating income $510,3294,076$495,761500,3434,582$481,317485,8734,556 Interest: Debt Capital lease and financing obligations Interest income Interest, net Loss on extinguishment of debt Other (gains) and losses Income before income taxes Provision for income taxes Consolidated net income Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart \begin{tabular}{rrr} 385,301 & 373,396 & 361,256 \\ 107,147 & 106,510 & 101,853 \\ \hline 21,957 & 20,437 & 22,764 \end{tabular} Net income per common share: \begin{tabular}{l|llll} Basic net income per common share attributable to Walmart & $2.28 & $ & 3.29 & $4.40 \\ Diluted net income per common share attributable to Walmart & 2.26 & 3.28 & 4.38 \end{tabular} Weighted-average common shares outstanding: Basic Diluted \begin{tabular}{lll} 2,929 & 2,995 & 3,101 \\ 2,945 & 3.010 & 3,112 \\ \hline \end{tabular} Weighted-average common shares outstanding: Basic Diluted Dividends declared per common share See accompanying notes. Walmart Inc. Consolidated Statements of Comprehensive Income (Amounts in millions) Consolidated net income 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 Comprehensive income, net of income taxes Comprehensive (income) loss attributable to noncontrolling interest Comprehensive income attributable to Walmart See accompanying notes. Walmart Inc. Consolidated Balance Sheets Walmart Inc. Consolidated Balance Sheets (Amounts in millions) ASSETS Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets As of January 31, 20192018 Property and equipment: Property and equipment 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 \begin{tabular}{rr} $5,225 & $5,257 \\ 47,060 & 46,092 \\ 22,159 & 22,122 \\ 428 & 645 \\ 1,876 & 3,738 \\ 729 & 667 \\ \hline 77,477 & 78,521 \end{tabular} Commitments and contingencies Equity: \begin{tabular}{lrr} Common stock & 288 & 295 \\ Capital in excess of par value & 2,965 & 2,648 \\ Retained earnings & 80,785 & 85,107 \\ Accumulated other comprehensive loss & (11,542) & (10,181) \\ Total Walmart shareholders' equity & 72,496 & 77,869 \\ \hline Noncontrolling interest & 7,138 & 2,953 \\ \hline Total equity & 80,82279,634 \\ Total liabilities and equity & $219,295 & $204,522 \\ See accompanying notes. \end{tabular} Walmart Inc. Consolidated Statements of Shareholders' Equity Walmart Inc. Consolidated Statements of Shareholders' Equity M Gmail - YouTube Walmart Inc. Consolidated Statements of Cash Flows (Amounts in millions) Cash flows from operating activities: Consolidated net income Fiscal Years Ended January 31, 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 cash provided by operating activities \begin{tabular}{rrr} (368) & (1,074) & (402) \\ (1,311) & (140) & 1,021 \\ 1,831 & 4,086 & 3,942 \\ 183 & 928 & 1,280 \\ (40) & (557) & 492 \\ \hline 27,753 & 28,337 & 31,673 \end{tabular} 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 \begin{tabular}{rrr} (10,344) & (10,051) & (10,619) \\ 519 & 378 & 456 \\ 876 & 1,046 & 662 \\ & & (1,901) \\ (14,656) & (375) & (2,463) \\ (431) & (77) & (31) \\ \hline(24,036) & (9,079) & (13,896) \end{tabular} Cash flows from financing activities