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 Alexa digital assistant in its Echo speakers-and is a major provider of cloud computing services. The following are Amazon's financial statements as presented in the company's 2020 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, 2018 $21,856 2019 $32,173 2020 $36,410 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD OPERATING ACTIVITIES: Net income 10,073 11,588 21,331 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other 15,341 21,789 25,251 Stock-based compensation 5,418 6,864 9,208 Other operating expense (income), net 274 164 (71) 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 sales and incentives Acquisitions, net of cash acquired, and other 219 (249) (2,582) 441 796 (554) (1,314) (3,278) (2,849) (4,615) (7,681) (8,169) 3,263 8,193 17,480 472 (1,383) 5,754 1,151 30,723 1,711 38,514 1,265 66,064 Sales and maturities of marketable securities Purchases of marketable securities Net cash provided by (used in) investing activities (13,427) (16,861) (40,140) 2,104 (2,186) 4,172 5,096 (2,461) (2,325) 8,240 (7,100) 22,681 50,237 (31,812) (72,479) (12,369) (24,281) (59,611) FINANCING ACTIVITIES: Proceeds from short-term debt, and other Repayments of short-term debt, and other Proceeds from long-term debt Repayments of long-term debt Principal repayments of finance leases Principal repayments of financing obligations 886 1,402 6,796 (813) (1,518) (6,177) 182 871 10,525 (155) (1,166) (1,553) (7,449) (9,628) (10,642) (337) (27) (53)