APPENDIX D
APPENDIX E
Question 5 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 Amazon and Wal- Mart, including the notes to the financial statements, are alsoprovided in Appendices D and E, respectively. Instructions for accessing and using the complete annual reports The financial statements Amazon.com, Inc. and Wal-Mart Stores, Inc. contain the following selected accounts. Wal-Mart Amazon 1. Interest Expense 1. Product Revenues 2. Cash and Cash Equivalents 2. Inventories 3. Cost of Sales 3. Accounts Payable Determine the normal balance of the listed accounts for each company. Amazon Wal-Mart 1. Interest Expense 1. Product Revenues 2. Cash and Cash Equivalents 2. Inventories 3. Accounts Payable 3. Cost of Sales LINK TO TEXT LINK TO TEXT Identify the other account ordinarily involved when: (1) Accounts Receivable increased. (2) Interest Expense is increased. (3) Salaries and Wages Payable is decreased (4) Service Revenue is increased. Click if you would like to Show Work for this question: Open Show Work AMAZON.COM, INC CONSOLIDATED STATEMENTS OF CASH FLOWS in millions) ear Ended Decenber 31, 2015 14.557 2013 2014 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 8658 $ 8.084 OPERATING ACTIVITIES Net income (los) s96 (241) 274 Adjusments to recoacile net income (loss) to net cash from operating activities Depeciatioa of property and equipment, including isteral-use sotware aad websate developaet, and other aomzation, including capitalized conte costs 6,281 4.745 3,253 Stock-based compensation Otber operating expense (income), net 2.119 1497 L134 155 129 114 1 Losses (gains) on sales of macketable securities, zet Oer expesse (ncome), et 245 62 166 Deferred income taxes 81 (316) (156) Excess tax benefits from stock-based compensatioa. (119) (78) (6) Changes in operating assets and abnes Inventories (2.187) (1410 1193) Accouats receivable, net and other (1755) 1039) (846) Accoats payable 1,888 4.294 1759 Accrued expesses and other 013 705 736 Additions to unearned revenme 7,401 4433 2,691 Amomzatioa of peeviously uneamed sevemue (6,109) (3.692) (2,292) Net cas provided by (used in) operating activities 6.342 11.920 5.475 NVESTING ACTIVITIES: Purchases of peoperty and equipanent, iacludag iaternal-use software and website development, ne Acquisitions, aet of cash acquired and other (4,589) (4893) 3,444 (795) (979) (312) Sales and mahurities of marketable securities 3,025 3349 2.306 Purchases of marketable securities (2.826 (4,091) 2542) Net cash provided by (used in) imvesting activities (6,450) (5,065) (4,276) AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS in millions) Yar Ended Desuber 21, 2015 (eonties FINANCING ACIVIIES Exrrs ts beefils fom stck-bownd cmpTaim 119 78 ProCnds fm ln- delt md othe Rym of lmp-iem d oth 353 6359 304 (162) (SIy Pnncipal sepayaeats of caputal lease obligatioas 462) (128) (775) Pnncipal repayments ofaance lease obluganoas (121) (35) (5) 1,2 (3,03 (3 Net cash pronded by (sed m) finsacung actmtes Foceiga crency ettect on cash and cash equralents (31U (34) Net increase (decreace) in cash and cah equvalents 1 331 5.89 CASH AND CAS EQUIVALENIS, END OF PERIOD SUPPLEMENTAL CASH FLOW INFORMATION 15890 S 11,557 8,058 91 S Cash paid or interest on long term debe 325 97 Cash paid for interest on capital and nance lease obligatioas 153 $6 41 Cash paid for income taxes (net of retunds) 273 177 169 Property and equipment acquired mder capital leases 4.717 4.008 1,867 Propesty and equipauent acquired mder baild-to-sait leasesa 544 920 877 See accompanying notes to consolidated financial statements AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) Ye Ended December 31, 2015 2014 2013 Net peoduct sales 79,268 S 70.080 S 60903 Net service sales 27.738 13.549 18,908 88.988 Tatal net sales 107.006 74 452 Opeating expenses (1) Cast of sales 71.651 62.752 54.181 Fulillment 13410 10.766 8585 Maketmg Teclmloy and coi G ms 5,254 4,332 3,133 6.565 12,510 9.275 717 1,532 L129 Other operating expease (income), net 171 133 11 Total opecating expenses 101,773 88,810 73,707 Incouse fro operatioas 2.233 178 715 Interest income 0 48 Interest expense (4) 210y (141) Other income (expease) aet (6) (118) (146) (661) (239) Tatal -pmg meenne (expens) Incum Ouss) lfene mexene ls (28) 168 (111) 506 0) (167) (161) Equty-method mvestment actvity, et af bax (22) 37 (71) Net incoe (loss) 596 S (241) 274 0 60 Has s per shre Diluted gs per shee 178 S (052) 125 S (0.52) 039 Weighted-verage shares sed im compulation of eamngs per share Basic 467 462 457 Diluted 477 462 465 (1)Inchndes stock-based copensation as follons Fulfillment 482 S 375 S 294 Marketing 190 125 Technology and content 1,224 804 603 General and administrative 223 193 149 See accompanying notes to consolidated finsncial statements. AMAZON.COM, INC CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) Year Ended December 31. 2015 2013 2014 Net meoe (los) 596 (241) 274 ther emphensive inenme (nss) u cuy rnlalu ajusuuls, uel of las ol'$10, $(3), d Sx) Nel clmge valhoed gs (ln) on avalable r sale secunla Unrealized pains (osses), net of tax of S), $1, and $ (210) () 64 (10) Reclassificato adjustuent foe losses (ga) mcluded income (expense), net," net of tax of $0, $(1), and $(1) othe (3) Net unrealized gains (losses) on available-for-sale secarities Total other comprehensive income (loss) (1) (2) (9) (212) (326) 54 Comprehensive income (loss) 384 $ (567) $ 328 See accompanying notes to consolidated financial statements AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) Ye Ended December 31, 2015 2014 2013 Net peoduct sales 79,268 S 70.080 S 60903 Net service sales 27.738 13.549 18,908 88.988 Tatal net sales 107.006 74 452 Opeating expenses (1) Cast of sales 71.651 62.752 54.181 Fulillment 13410 10.766 8585 Maketmg Teclmloy and coi G ms 5,254 4,332 3,133 6.565 12,510 9.275 717 1,532 L129 Other operating expease (income), net 171 133 11 Total opecating expenses 101,773 88,810 73,707 Incouse fro operatioas 2.233 178 715 Interest income 0 48 Interest expense (4) 210y (141) Other income (expease) aet (6) (118) (146) (661) (239) Tatal -pmg meenne (expens) Incum Ouss) lfene mexene ls (28) 168 (111) 506 0) (167) (161) Equty-method mvestment actvity, et af bax (22) 37 (71) Net incoe (loss) 596 S (241) 274 0 60 Has s per shre Diluted gs per shee 178 S (052) 125 S (0.52) 039 Weighted-verage shares sed im compulation of eamngs per share Basic 467 462 457 Diluted 477 462 465 (1)Inchndes stock-based copensation as follons Fulfillment 482 S 375 S 294 Marketing 190 125 Technology and content 1,224 804 603 General and administrative 223 193 149 See accompanying notes to consolidated finsncial statements. AMAZON.COM, INC CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) Year Ended December 31. 2015 2013 2014 Net meoe (los) 596 (241) 274 ther emphensive inenme (nss) u cuy rnlalu ajusuuls, uel of las ol'$10, $(3), d Sx) Nel clmge valhoed gs (ln) on avalable r sale secunla Unrealized pains (osses), net of tax of S), $1, and $ (210) () 64 (10) Reclassificato adjustuent foe losses (ga) mcluded income (expense), net," net of tax of $0, $(1), and $(1) othe (3) Net unrealized gains (losses) on available-for-sale secarities Total other comprehensive income (loss) (1) (2) (9) (212) (326) 54 Comprehensive income (loss) 384 $ (567) $ 328 See accompanying notes to consolidated financial statements AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in millions) Conee Steck A dated Oder Cempreive Incane Lon Addianal Para Capital Tstal Stcasd Trea Stack Retaiard Earaiara Eqaity Sares nverat Balance as of Janmary 1, 2013 5 S (1837) S 454 8.347 $ (239) 1,916 S 8,192 Net income 274 274 Other compehensive income (loss) Exercise of coemon stock options 54 54 Excess tax benefits from stock-based compensatice 73 73 Stock-based compensation and issuance of 1.149 1.149 Balance as of December 31, 2013 4598 (1,837) 9,573 (185) 2,190 9,746 Net loss (241) (241) Other comprebensive income (loss) (326) (326) Exercise of coeanon sock options Excess ta benefits from stock-based compeasation Stock-based compensation and issuance of 6 1,510 1,510 Issuance of comon sock for acquisition 44 44 activity Balance as of December 31, 2014 465 (1,837) 11,135 (511) 1949 10,741 Net incomes 596 596 Other comprehensive income (loss) Exercise of coemon stock options (212) (212) Excess tax benefits from stock-based compensation 119 119 Stock-based compensation and issuance of employee benefit plan stock Issmance of conon sock for acquisition actvity 2.131 2.131 Balance as of December 31, 2015 471 S S (1837) 13.394 S (723) $ 2545 S 13.384 See accompanving notes to consolidated financial staterments The following are Wal-Mart Stores, Inc.'s financial statements as presented in the company's 2016 annual report. The complete annual report, including notes to the financial statements, is available at the company's website. Consolidated Statements of Income Fcal Years Ended January 31 2014 014 (Amauhnmilions ecet r ham dotal Revenues $43 $482,229 $473,076 enhio and other income a5 651 476 294 Tetal revenues Costs and expenses 482.130 360,984 97,041 358069 91,353 365,08 9341 Operating seling genesal and adminisative esperses 24,105 27,147 26872 perating income 2,027 216 20/2 Deot cal lease ard financing obligations Interest income (81) (113 (119 2,467 2348 2216 Interest, net rations before income taxes 21,638 24799 24656 iia for ineome taxes Current Tetal provision for income taxes 6,558 7,985 8.105 15.080 6551 Income from continuing operations 16814 coninued operations, net of income taxes 15.080 Consolidated net income attributable to noncontrolling interest (386) 36 (6/3 $ 16022 $ 1636 Consolidated net income attributable to Walmart 14,694 Basic net income per common sha otinuing operations attrbutable to Wamart S50 S 487 4.58 Basic income per common share from discontinued operations atributable to Walmart S490 Basic net income per common share attributable to Walmart 4.58 S507 Diluted net income per com cotinuing oneations attributable to Walmart $ 4.57 S4.99 00 $485 007 Diluted income per common share from discontinued operations attributable to Walmart $ 457 s 488 Diluted net income per common share attributable to Walmart 505 Weighted average common shares outstanding 3.207 3217 3230 Dutort Dividends declared per common share $ 188 1.96 S 192 Sae accompaing nos Consolidated Statements of Comprehensive Income Fiscal Years Ended January 31, (Amounts in millions) 2016 2015 2014 Consolidated net income Less consolidated net income attributable to non redeemable noncontrolling interest Less consolidated net income attributable to redeemable noncontrolling interest $15,080 (386) $17,099 (736) $16,695 (606) (67) Consolidated net income attributable to Walmart 14,694 16,363 16,022 Other comprehensive income (loss), net of income taxes Currency translation and other Net investment hedges Cash flow hedges Minimum pension liability (4,558) (3,221) (5,220) 366 379 75 (202) 86 (470) (69) 207 153 Other comprehensive income (loss), net of income taxes Less other comprehensive income (loss) attributable to nonredeemable noncontrolling interest Less other comprehensive income (loss) attributable to redeemable noncontroll ing interest (4,970) 541 (4,718) 546 (2,786) 311 66 Other comprehensive income (loss) attributable to Walmart (4,429) (4,172) (2,409) Comprehensive income, net of income taxes Less comprehensive income (loss) attributable to nonredeemable noncontrolling interest Less comprehensive income (loss) attributable to redeemable noncontrolling interest 10,110 155 12.381 13.909 (295) (1) (190) Comprehensive income attributable to Walmart $10,265 $12,191 $13,613 See accompanying notes Consolidated Balance Sheets Fiscal Years Ended January 31, (Amounts in millons) 2016 2015 ASSETS Current assets: Cash and cash equivalents Receivables, net $ 8,705 5,624 S 9,135 6,778 45,141 Inventories 44,469 Prepaid expenses and other 1,441 2224 Total current assets Property and equipment Property and equipment Less accumulated depreciation 60,239 63,278 177 395 (63,115) 176,958 (66,787) 114.280 Property and equipment, net 110,171 Property under capital lease and financing obligations: Property under capital lease and financing obligations 11,096 5,239 Less accumulated amortization (4,751) (2,864) Property under capital lease and financing obligations, net 2375 6,345 Goodwill 16,695 18,102 5,455 Other assets and deferred charges 6,131 Total assets $199,581 $203,490 LIABILITIES AND EQUITY Current liabilities $ 2,708 S 1,592 38410 19,152 Short-term borrowings Accounts payable 38,487 Accrued liabilities 19,607 Accrued income taxes 521 1,021 Lang-term debt due within one year Capital lease and financing obligations due within one year 2,745 4,791 287 551 65,253 Total current liabilities 64,619 Long-term debt Long-term capital lease and financing obligations Deferred income taxes and other 38,214 40,889 2,606 8805 5,816 7,321 Commitments and contingencies Equity Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive income (loss) 317 323 1,805 2,462 85,777 (7,168) 90,021 (11,597) Total Walmart shareholders' equity 80,546 81,394 4,543 Nonredeemable noncontrolling interest 3,065 Total equity 83,611 85,937 Total liabilities and equity $199,581 $203,490 See accompanying notes Consolidated Statements of Shareholders' Equity and Redeemable Noncontrolling Interest Accumulated Total Nontedeemable Noncontroling Interest Capital in Exces of Par Value Other Walmart Redeemable Comprehensive Shacholders Income (Lossk Noncontrolling Common Stock Rctained Total Amount (Amounts in milons Shares Earnings Equity Equity Interest $332 $3,620 $72978 16,022 (587) 76,343 16,022 5,395 $81,738 16617 $ 519 Balances as of February 1, 2013 Consolidated net income 3,314 595 78 Other comprehensive income, net of income taxes Cash dividends declared (2,409) (2,409 (311) (2,720) (66) (6,139 (6,254) (6,139) (6,557) ($1.88 per share) Purchase of Company stock Redermption value adjustment of redeemable noncontroling interest (6,139) (87) (9) (294) (6,557) (1,019) (581) (1,019) (1,019 1,019 (59) (41) (595) Other 55 14 Balances as of January 31, 2014 Consolidated net income Other comprehensive loss 76566 76255 3,233 323 2,362 (2,996) 5,084 81,339 1,491 16363 16,363 736 17,099 net of income taxes Cash dividends declared (4,172) (4,172) (546) (4718) (6,185) (950) ($1.92 per share) Purchase of Company stock Purchase of redeemable (6,185) (980) (6,185) (980) (13) (1) (29) noncontrolling interest Other (1,491) 129 (17) 113 (731) (618) Balances as of January 31, 2015 Consolidated net income 3,228 323 2,462 85,777 14,694 (7,168) 4,543 85,937 15,080 81,394 14,694 386 Other comprehensive income, net of income taxes (4,429) (4,429) (541) (4,970) Cash dividends declared ($1.96 per share) Purchase of Company stock (6,294) (6,294) (6,294) (65) (6) (102) (4,148) (4,256) (4,256) Cash dividend declared to noncontrolling interest (691) (632) (691) (1,195) Other (1) (555) (8) (563) S(11,597) Balances as of January 31, 2016 3,162 $317 $1,805 $90,021 $80,546 $3,065 $83,611 See accompanying notes Consolidated Statements of Cash Flows Fiscal Years Ended January 31, (Amounts in millions) 2014 2016 2015 Cash flows from operating activities: Consolidated net income $15,080 $17,099 $16695 (144) Income from discontinued operations, net of income taxes (285) 16551 Income from continuing operations Adjustments to reconcile income from continuing operations to net cash provided by operating activities Depreciation and amortization 15,080 16,814 9,454 9,173 (503) 785 8870 Deferred income taxes (672) (279) 938 Other operating activities 1,410 Changes in certain assets and liabilities, net of effects of acquisitions: Receivables, net (569) (1,229) (19) (566) Inventories (703) (1,667) Accounts payable 2,008 2678 531 Accrued liabilities Accrued income taxes 1,303 (472) 1,249 103 (1,224) 166 Net cash provided by operating activities 27,389 28.564 23.257 Cash flows from investing activities: Payments for property and equipment Proceeds from disposal of property and equipment Proceeds from disposal of certain operations Other investing activities (11,477 (12,174) (13,115) 727 635 570 246 671 (79 (192) (138) (10,675 (11,125 (12,526) Net cash used in investing activities 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 1.235 911 (6,288) 39 5,174 (3,904) (6,185) (1,015) (600) 7,072 (4,968 (6,139) (6,683) (4,432) (6,294) (4,112) (719) (426) (1,326) (1,844) (296) (513) (409) (260) (10,789) Net cash used in financing activities (16,122) (15,071) Effect of exchange rates on cash and cash equivalents (1,022) (514) (442) (430) 9,135 Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year 1,854 (500) 7,781 7,281 $ 8,705 Cash and cash equivalents at end of period 9,135 7,281 Supplemental disclosure of cash flow information: Income taxes paid Interest paid 8,111 2,540 8,169 8641 2433 2,362 See accompanying notes
