Appendix D Specimen Financial Statements: Amazon.com, Inc. Amazon.com, Inc. is the worlds largest online retailer. It also produces consumer electronicsnotably the Kindle e-book reader, the Kindle Fire Tablet computer, and the Amazon Echo deviceand is a major provider of cloud computing services. The following are Amazons financial statements as presented in the companys 2019 annual report. The complete annual report, including notes to the financial statements, is available at the companys website. bappD.indd 1 8/6/20 9:28 PM D-2 APPENDIX D Specimen Financial Statements: Amazon.com, Inc. AppD_Weygandt14e_2PP Amazon.com, Inc. Consolidated Statements of Cash Flows (in millions) Year Ended December 31, 2017 2018 2019 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD $ 19,934 $ 21,856 $ 32,173 OPERATING ACTIVITIES: Net income 3,033 10,073 11,588 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 11,478 15,341 21,789 Stock-based compensation 4,215 5,418 6,864 Other operating expense (income), net 202 274 164 Other expense (income), net (292) 219 (249) Deferred income taxes (29) 441 796 Changes in operating assets and liabilities: Inventories (3,583) (1,314) (3,278) Accounts receivable, net and other (4,780) (4,615) (7,681) Accounts payable 7,100 3,263 8,193 Accrued expenses and other 283 472 (1,383) Unearned revenue 738 1,151 1,711 Net cash provided by (used in) operating activities 18,365 30,723 38,514 INVESTING ACTIVITIES: Purchases of property and equipment (11,955) (13,427) (16,861) Proceeds from property and equipment sales and incentives 1,897 2,104 4,172 Acquisitions, net of cash acquired, and other (13,972) (2,186) (2,461) Sales and maturities of marketable securities 9,677 8,240 22,681 Purchases of marketable securities (12,731) (7,100) (31,812) Net cash provided by (used in) investing activities (27,084) (12,369) (24,281) FINANCING ACTIVITIES: Proceeds from long-term debt and other 16,228 768 2,273 Repayments of long-term debt and other (1,301) (668) (2,684) Principal repayments of finance leases (4,799) (7,449) (9,628) Principal repayments of financing obligations (200) (337) (27) Net cash provided by (used in) financing activities 9,928 (7,686) (10,066) Foreign currency effect on cash, cash equivalents, and restricted cash 713 (351) 70 Net increase (decrease) in cash, cash equivalents, and restricted cash 1,922 10,317 4,237 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD $ 21,856 $ 32,173 $ 36,410 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on long-term debt $ 328 $ 854 $ 875 Cash paid for operating leases 3,361 Cash paid for interest on finance leases 200 381 647 Cash paid for interest on financing obligations 119 194 39 Cash paid for income taxes, net of refunds 957 1,184 881 Assets acquired under operating leases 7,870 Property and equipment acquired under finance leases 9,637 10,615 13,723 Property and equipment acquired under build-to-suit arrangements 3,541 3,641 1,362 See accompanying notes to consolidated financial statements. bappD.indd 2 8/6/20 9:28 PM AppD_Weygandt14e_2PP Amazon.com, Inc. Consolidated Statements of Operations (in millions, except per share data) Year Ended December 31, 2017 2018 2019 Net product sales $ 118,573 $ 141,915 $ 160,408 Net service sales 59,293 90,972 120,114 Total net sales 177,866 232,887 280,522 Operating expenses: Cost of sales 111,934 139,156 165,536 Fulfillment 25,249 34,027 40,232 Technology and content 22,620 28,837 35,931 Marketing 10,069 13,814 18,878 General and administrative 3,674 4,336 5,203 Other operating expense (income), net 214 296 201 Total operating expenses 173,760 220,466 265,981 Operating income 4,106 12,421 14,541 Interest income 202 440 832 Interest expense (848) (1,417) (1,600) Other income (expense), net 346 (183) 203 Total non-operating income (expense) (300) (1,160) (565) Income before income taxes 3,806 11,261 13,976 Provision for income taxes (769) (1,197) (2,374) Equity-method investment activity, net of tax (4) 9 (14) Net income $ 3,033 $ 10,073 $ 11,588 Basic earnings per share $ 6.32 $ 20.68 $ 23.46 Diluted earnings per share $ 6.15 $ 20.14 $ 23.01 Weighted-average shares used in computation of earnings per share: Basic 480 487 494 Diluted 493 500 504 See accompanying notes to consolidated financial statements. APPENDIX D Specimen Financial Statements: Amazon.com, Inc. D-3 bappD.indd 3 8/6/20 9:28 PM D-4 APPENDIX D Specimen Financial Statements: Amazon.com, Inc. AppD_Weygandt14e_2PP Amazon.com, Inc. Consolidated Statements of Comprehensive Income (in millions) Year Ended December 31, 2017 2018 2019 Net income $ 3,033 $ 10,073 $ 11,588 Other comprehensive income (loss): Net change in foreign currency translation adjustments: Foreign currency translation adjustments, net of tax of $5, $6, and $(5) 533 (538) 78 Reclassification adjustment for foreign currency translation included in Other operating expense (income), net, net of tax of $0, $0, and $29 (108) Net foreign currency translation adjustments 533 (538) (30) Net change in unrealized gains (losses) on available-for-sale debt securities: Unrealized gains (losses), net of tax of $5, $0, and $(12) (39) (17) 83 Reclassification adjustment for losses (gains) included in Other income (expense), net, net of tax of $0, $0, and $0 7 8 (4) Net unrealized gains (losses) on available-for-sale debt securities (32) (9) 79 Total other comprehensive income (loss) 501 (547) 49 Comprehensive income $ 3,534 $ 9,526 $ 11,637 See accompanying notes to consolidated financial statements. bappD.indd 4 8/6/20 9:28 PM AppD_Weygandt14e_2PP APPENDIX D Specimen Financial Statements: Amazon.com, Inc. D-5 Amazon.com, Inc. Consolidated Balance Sheets (in millions, except per share data) December 31, 2018 2019 ASSETS Current assets: Cash and cash equivalents $ 31,750 $ 36,092 Marketable securities 9,500 18,929 Inventories 17,174 20,497 Accounts receivable, net and other 16,677 20,816 Total current assets 75,101 96,334 Property and equipment, net 61,797 72,705 Operating leases 25,141 Goodwill 14,548 14,754 Other assets 11,202 16,314 Total assets $ 162,648 $ 225,248 LIABILITIES AND STOCKHOLDERS EQUITY Current liabilities: Accounts payable $ 38,192 $ 47,183 Accrued expenses and other 23,663 32,439 Unearned revenue 6,536 8,190 Total current liabilities 68,391 87,812 Long-term lease liabilities 9,650 39,791 Long-term debt 23,495 23,414 Other long-term liabilities 17,563 12,171 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 514 and 521 Outstanding shares 491 and 498 5 5 Treasury stock, at cost (1,837) (1,837) Additional paid-in capital 26,791 33,658 Accumulated other comprehensive income (loss) (1,035) (986) Retained earnings 19,625 31,220 Total stockholders equity 43,549 62,060 Total liabilities and stockholders equity $ 162,648 $ 225,248 See accompanying notes to consolidated financial statements. bappD.indd 5 8/6/20 9:28 PM D-6 APPENDIX D Specimen Financial Statements: Amazon.com, Inc. AppD_Weygandt14e_2PP Amazon.com, Inc. Consolidated Statements of Stockholders Equity (in millions) Common Stock Shares Amount Treasury Stock Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Total Stockholders Equity Balance as of January 1, 2017 477 $ 5 $ (1,837) $ 17,186 $ (985) $ 4,916 $ 19,285 Cumulative effect of a change in accounting principle related to stock-based compensation 687 687 Net income 3,033 3,033 Other comprehensive income (loss) 501 501 Exercise of common stock options 7 1 1 Stock-based compensation and issuance of employee benefit plan stock 4,202 4,202 Balance as of December 31, 2017 484 5 (1,837) 21,389 (484) 8,636 27,709 Cumulative effect of change in accounting principles related to revenue recognition, income taxes, and financial instruments (4) 916 912 Net income 10,073 10,073 Other comprehensive income (loss) (547) (547) Exercise of common stock options 7 Stock-based compensation and issuance of employee benefit plan stock 5,402 5,402 Balance as of December 31, 2018 491 5 (1,837) 26,791 (1,035) 19,625 43,549 Cumulative effect of change in accounting principle related to leases 7 7 Net income 11,588 11,588 Other comprehensive income (loss) 49 49 Exercise of common stock options 7 Stock-based compensation and issuance of employee benefit plan stock 6,867 6,867 Balance as of December 31, 2019 498 $ 5 $ (1,837) $ 33,658 $ (986) $ 31,220 $ 62,060 See accompanying notes to consolidated financial statements. bappD.indd 6 8/6/20 9:28 PM

E-1 AppE_Weygandt14e_2PP Appendix E Specimen Financial Statements: Walmart Inc. The following are Walmart Inc.s financial statements as presented in the companys 2020 annual report. The complete annual report, including notes to the financial statements, is available at the companys website. Walmart Inc. Consolidated Statements of Income Fiscal Years Ended January 31, (Amounts in millions, except per share data) 2020 2019 2018 Revenues: Net sales $ 519,926 $ 510,329 $ 495,761 Membership and other income 4,038 4,076 4,582 Total revenues 523,964 514,405 500,343 Costs and expenses: Cost of sales 394,605 385,301 373,396 Operating, selling, general and administrative expenses 108,791 107,147 106,510 Operating income 20,568 21,957 20,437 Interest: Debt 2,262 1,975 1,978 Finance, capital lease and financing obligations 337 371 352 Interest income (189) (217) (152) Interest, net 2,410 2,129 2,178 Loss on extinguishment of debt 3,136 Other (gains) and losses (1,958) 8,368 Income before income taxes 20,116 11,460 15,123 Provision for income taxes 4,915 4,281 4,600 Consolidated net income 15,201 7,179 10,523 Consolidated net income attributable to noncontrolling interest (320) (509) (661) Consolidated net income attributable to Walmart $ 14,881 $ 6,670 $ 9,862 Net income per common share: Basic net income per common share attributable to Walmart $ 5.22 $ 2.28 $ 3.29 Diluted net income per common share attributable to Walmart 5.19 2.26 3.28 Weighted-average common shares outstanding: Basic 2,850 2,929 2,995 Diluted 2,868 2,945 3,010 Dividends declared per common share $ 2.12 $ 2.08 $ 2.04 See accompanying notes. bappE.indd 1 8/6/20 9:39 PM E-2 APPENDIX E Specimen Financial Statements: Walmart Inc. AppE_Weygandt14e_2PP Walmart Inc. Consolidated Statements of Comprehensive Income Fiscal Years Ended January 31, (Amounts in millions) 2020 2019 2018 Consolidated net income $ 15,201 $ 7,179 $ 10,523 Consolidated net income attributable to noncontrolling interest (320) (509) (661) Consolidated net income attributable to Walmart 14,881 6,670 9,862 Other comprehensive income (loss), net of income taxes Currency translation and other 286 (226) 2,540 Net investment hedges 122 272 (405) Cash flow hedges (399) (290) 437 Minimum pension liability (1,244) 131 147 Unrealized gain on available-for-sale securities 1,501 Other comprehensive income (loss), net of income taxes (1,235) (113) 4,220 Other comprehensive (income) loss attributable to noncontrolling interest (28) 188 (169) Other comprehensive income (loss) attributable to Walmart (1,263) 75 4,051 Comprehensive income, net of income taxes 13,966 7,066 14,743 Comprehensive income attributable to noncontrolling interest (348) (321) (830) Comprehensive income attributable to Walmart $ 13,618 $ 6,745 $ 13,913 See accompanying notes. (continues) As of January 31, (Amounts in millions) 2020 2019 ASSETS Current assets: Cash and cash equivalents $ 9,465 $ 7,722 Receivables, net 6,284 6,283 Inventories 44,435 44,269 Prepaid expenses and other 1,622 3,623 Total current assets 61,806 61,897 Property and equipment, net 105,208 104,317 Operating lease right-of-use assets 17,424 Finance lease right-of-use assets, net 4,417 Property under capital lease and financing obligations, net 7,078 Goodwill 31,073 31,181 Other long-term assets 16,567 14,822 Total assets $ 236,495 $ 219,295 Walmart Inc. Consolidated Balance Sheets bappE.indd 2 8/6/20 9:39 PM APPENDIX E Specimen Financial Statements: Walmart Inc. E-3 AppE_Weygandt14e_2PP As of January 31, (Amounts in millions) 2020 2019 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings $ 575 $ 5,225 Accounts payable 46,973 47,060 Accrued liabilities 22,296 22,159 Accrued income taxes 280 428 Long-term debt due within one year 5,362 1,876 Operating lease obligations due within one year 1,793 Finance lease obligations due within one year 511 Capital lease and financing obligations due within one year 729 Total current liabilities 77,790 77,477 Long-term debt 43,714 43,520 Long-term operating lease obligations 16,171 Long-term finance lease obligations 4,307 Long-term capital lease and financing obligations 6,683 Deferred income taxes and other 12,961 11,981 Commitments and contingencies Equity: Common stock 284 288 Capital in excess of par value 3,247 2,965 Retained earnings 83,943 80,785 Accumulated other comprehensive loss (12,805) (11,542) Total Walmart shareholders equity 74,669 72,496 Noncontrolling interest 6,883 7,138 Total equity 81,552 79,634 Total liabilities and equity $ 236,495 $ 219,295 See accompanying notes. bappE.indd 3 8/6/20 9:39 PM E-4 APPENDIX E Specimen Financial Statements: Walmart Inc. AppE_Weygandt14e_2PP Walmart Inc. Consolidated Statements of Shareholders Equity (Amounts in millions) Common Stock Shares Amount Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Walmart Shareholders Equity Noncontrolling Interest Total Equity Balances as of February 1, 2017 3,048 $ 305 $ 2,371 $ 89,354 $ (14,232) $ 77,798 $ 2,737 $ 80,535 Consolidated net income 9,862 9,862 661 10,523 Other comprehensive income (loss), net of income taxes 4,051 4,051 169 4,220 Cash dividends declared ($2.04 per share) (6,124) (6,124) (6,124) Purchase of Company stock (103) (10) (219) (7,975) (8,204) (8,204) Cash dividend declared to noncontrolling interest (687) (687) Other 7 496 (10) 486 73 559 Balances as of January 31, 2018 2,952 295 2,648 85,107 (10,181) 77,869 2,953 80,822 Adoption of new accounting standards on February 1, 2018, net of income taxes 2,361 (1,436) 925 (1) 924 Consolidated net income 6,670 6,670 509 7,179 Other comprehensive income (loss), net of income taxes 75 75 (188) (113) Cash dividends declared ($2.08 per share) (6,102) (6,102) (6,102) Purchase of Company stock (80) (8) (245) (7,234) (7,487) (7,487) Cash dividend declared to noncontrolling interest (488) (488) Noncontrolling interest of acquired entity 4,345 4,345 Other 6 1 562 (17) 546 8 554 Balances as of January 31, 2019 2,878 288 2,965 80,785 (11,542) 72,496 7,138 79,634 Adoption of new accounting standards on February 1, 2019, net of income taxes (266) (266) (34) (300) Consolidated net income 14,881 14,881 320 15,201 Other comprehensive income (loss), net of income taxes (1,263) (1,263) 28 (1,235) Cash dividends declared ($2.12 per share) (6,048) (6,048) (6,048) Purchase of Company stock (53) (5) (199) (5,435) (5,639) (5,639) Cash dividends declared to noncontrolling interest (475) (475) Other 7 1 481 26 508 (94) 414 Balances as of January 31, 2020 2,832 $ 284 $ 3,247 $ 83,943 $ (12,805) $ 74,669 $ 6,883 $ 81,552 See accompanying notes. bappE.indd 4 8/6/20 9:39 PM APPENDIX E Specimen Financial Statements: Walmart Inc. E-5 AppE_Weygandt14e_2PP Walmart Inc. Consolidated Statements of Cash Flows Fiscal Years Ended January 31, (Amounts in millions) 2020 2019 2018 Cash flows from operating activities: Consolidated net income $ 15,201 $ 7,179 $ 10,523 Adjustments to reconcile consolidated net income to net cash provided by operating activities: Depreciation and amortization 10,987 10,678 10,529 Unrealized (gains) and losses (1,886) 3,516 (Gains) and losses for disposal of business operations 15 4,850 Asda pension contribution (1,036) Deferred income taxes 320 (499) (304) Loss on extinguishment of debt 3,136 Other operating activities 1,981 1,734 1,210 Changes in certain assets and liabilities, net of effects of acquisitions: Receivables, net 154 (368) (1,074) Inventories (300) (1,311) (140) Accounts payable (274) 1,831 4,086 Accrued liabilities 186 183 928 Accrued income taxes (93) (40) (557) Net cash provided by operating activities 25,255 27,753 28,337 Cash flows from investing activities: Payments for property and equipment (10,705) (10,344) (10,051) Proceeds from the disposal of property and equipment 321 519 378 Proceeds from the disposal of certain operations 833 876 1,046 Payments for business acquisitions, net of cash acquired (56) (14,656) (375) Other investing activities 479 (431) (77) Net cash used in investing activities (9,128) (24,036) (9,079) Cash flows from financing activities: Net change in short-term borrowings (4,656) (53) 4,148 Proceeds from issuance of long-term debt 5,492 15,872 7,476 Repayments of long-term debt (1,907) (3,784) (13,061) Premiums paid to extinguish debt (3,059) Dividends paid (6,048) (6,102) (6,124) Purchase of Company stock (5,717) (7,410) (8,296) Dividends paid to noncontrolling interest (555) (431) (690) Purchase of noncontrolling interest (8) Other financing activities (908) (629) (261) Net cash used in financing activities (14,299) (2,537) (19,875) Effect of exchange rates on cash, cash equivalents and restricted cash (69) (438) 487 Net increase (decrease) in cash, cash equivalents and restricted cash 1,759 742 (130) Cash, cash equivalents and restricted cash at beginning of year 7,756 7,014 7,144 Cash, cash equivalents and restricted cash at end of year $ 9,515 $ 7,756 $ 7,014 Supplemental disclosure of cash flow information: Income taxes paid $ 3,616 $ 3,982 $ 6,179 Interest paid 2,464 2,348 2,450 See accompanying notes. bappE.indd 5 8/6/20 9:39 PM bappE.indd 6 8/6/20 9:39 PM

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 in these financial statements, compute the following ratios for each company for the most recent year shown. (Assume all sales are credit sales. Use "net product sales" for Amazon and "net sales" for Walmart.) (Round answers to 1 decimal place, e.g. 52.5. Use 365 days for calculation.)