CALCULATOR FULL SCRE * Your answer is incorrect. Try again. 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, determine the following for each company. (Enter amounts in millions.) Amazon December 31, 2016 January 31, 2017 Wal-Mart Total assets 3,238 8,160 Receivables (net) 1.1152 0.8823 Net sales (product only) 0.8029 0.6027 X Net income / Closs) 1,949 10,142 Click if you would like to Show Work for this question: Modify Show Work e en/player/references/index.uni?mode=help&odinkobject=kimme19781119493624204-sec-00018.itemid=nopolice 2016 15,890 2,371 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FI OWS (in millions) Year Ended December 31 2014 2015 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 8,658 $ 14,557 S OPERATING ACTIVITIES: Net income (loss) (241) 596 Adjustments to reconcile net income (loss) to net cash from operating activities: Depreciation of property and equipment, including internal-use software and website development, and other amortization, including capitalized content costs 4,746 6,281 Stock-based compensation 1.497 2,119 Other operating expense, nel 129 155 Other expense (income), net 59 250 Deferred income taxes (316) 81 Excess tax benefits from stock-based compensation (6) (119) Changes in operating assets and liabilities: Inventories (1.193) (2,187) Accounts receivable, net and other (1,039) (1.755) Accounts payable 1.759 4.294 Accrued expenses and other 706 913 Additions to unearned revenue 4,433 7,401 Amortization of previously uncarned revenue (3.692) (6,109) Net cash provided by (used in operating activities 6,842 11.920 INVESTING ACTIVITIES: Purchases of property and equipment, including internal-use software and website development, net (4.893) (4.589) Acquisitions, net of cash acquired, and other (979) (795) Sales and maturities of marketable securities 3,349 3.025 Purchases of marketable securities 5491 14001) 8,116 2,975 160 (20) (246) (829) (1.426) (3,367) 5,030 1,724 11,931 (9.976) 16,443 (6,737) (116) 4,733 ctivate Wine References GOO Vplayer/references/index.uni?mode=help&xlinkobject=kimme19781119493624a04-sec-00018 de police 6,842 11,920 16,443 (4,893) (979) 3,349 (2,542) (5,065) (4,589) (795) 3,025 (4,091) (6,450) (6,737) (116) 4,733 (7,756) (9,876) Net cash provided by (used in) operating activities INVESTING ACTIVITIES: Purchases of property and equipment, including internal-use software and website development, net 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: Excess tax benefits from stock-based compensation Proceeds from long-term debt and other 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 and cash equivalents Nel increase (decrease in cash and cash equivalents CASH AND CASH EQUIVALENTS, 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 6 6,359 (513) (1,285) (135) 4,432 (310) 5.899 14,557 S 119 353 (1,652) (2,462) (121) (3,763) (374) 1,333 15,890 S 829 621 (354) (3,860) (147) (2,911) (212) 3.444 19,334 $ 325 $ 153 91 $ 86 177 4,008 920 273 4.717 544 290 206 412 5,704 1.209 See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATI STATEMENTS ADDITION yerlererences/index.undmode=help&xlinkobject=kimme19781119493624a04 1&itemid=nopolice AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) $ Year Ended December 31, 2014 2015 70,080 $ 79,268 18.908 27.738 88,988 107,006 2016 94,665 41,322 135,987 62,752 10.766 4,332 71.651 13.410 Net product sales Net service sales Total net sales Operating expenses: Cost of sales Fulfillment Marketing Technology and content General and administrative Other operating expense, net Total operating expenses Operating income Interest income Interest expense Other income (expense), net Total non-operating income (expense). Income (loss) before income taxes Provision for income taxes Equity-method investment activity. net of tax Net income (loss) 9.275 1.552 133 88.810 178 39 (210) (118) (289) 88,265 17.619 7,233 16,085 2.432 167 131.801 4,186 100 5,254 12.540 1.747 171 104.773 2.233 50 (459) (256) (665) 1.568 (950) (22) 596 S (484) 90 (294) 3.892 (1.425) (96 (167) (241 2.371 ndugen/player/references/index.uni?mode=help&oxdinkobject=kimme19781119493624 a04 sec-0001&itemid=nopolice Interest expense (210) Other income (expense), net (118) Total non-operating income (expense) (289) Income (loss) before income taxes (111) Provision for income taxes (167) Equity-method investment activity, net of tax 37 Net income (loss) $ (241) $ Basic earnings per share $ (0.52) $ Diluted earnings per share $ (0.52) $ Weighted average shares used in computation of earnings per share: Basic 462 462 Diluted See accompanying notes to consolidated financial statements. (459) (256) (665) 1,568 (950) (22) 596 $ 1.28 $ 1.25 $ (484) 90 (294) 3,892 (1.425) (96) 2,371 5.01 4.90 467 477 474 484 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) Year Ended December 31, 2014 2015 (241) S 596 S 2016 2.371 (325) (210) (279) Net income (loss) Other comprehensive income (loss): Foreign currency translation adjustments, net of tax of S(3), $10, and $(49) Net change in unrealized gains (losses) on available-for-sale securities: Unrealized gains (losses), net of tax of SI. S(5), and S(12) Weitemid=nopolice DAN Diluted TUT 462 477 484 See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) Year Ended December 31, 2014 2015 (241) S 596 S 2016 2,371 (325) (210) (279) Net income (loss) Other comprehensive income (loss): Foreign currency translation adjustments, net of tax of S(3), S10, and S(49) Net change in unrealized gains (losses) on available-for-sale securities: Unrealized gains (losses), net of tax of S1, S(5), and SC12) Reclassification adjustment for losses (gains) included in "Other income (expense), net.net of tax of S(1). SO, and S0 Net unrealized gains (losses) on available for sale securities Total other comprehensive income loss) Comprehensive income (loss) o (7) 5 8 17 (2) (212) 384 (567) S 2.109 See accompanying notes to consolidated financial statements AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS e AMAZON.COM, IN CONSOLIDATED BALANC EETS (in millions, except per share data) December 31, 2015 2016 $ 15,890 $ 3,918 10,243 5,654 35,705 21,838 3.759 3,445 64,747 $ 19,334 6,647 11.461 8,339 45,781 29.114 3,784 4,723 83.402 S 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 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other Unearned revenue Total current liabilities Long-term debt Other long-term liabilities Commitments and contingencies (Note 7) Stockholders' equity $ 20,397 $ 10.372 3.118 33,887 8,227 9.249 25,309 13,739 4.768 43.816 7.694 12,607 8,227 9,249 7,694 12,607 Long-term debt Other long-term liabilities 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 - 494 and 500 Outstanding shares - 471 and 477 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity See accompanying notes to consolidated financial statements. 5 (1.837) 13,394 (723) 2,545 13,384 64,747 $ 5 (1,837) 17.186 (985) 4,916 19.285 83.402 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY in millions) Common Stock References Google nome WOULSEN/player/references/index.uni?mode=helpodinkobject=kimme1978 11194936743 sec-0001&itemidanopolice CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in millions) Come Stock Shares 459 $ Total Additional Try Other Pada Star Comprehensive Rete Capital 5 $ (1,837) $ 9,573 $ (185) s 2,190 S (241) (326) 2 9,746 (241) (326 2 6 6 6 1,510 1,510 Balance as of January 1, 2014 Net loss Other comprehensive income (loss) Exercise of common stock Excess tax benefits from stock-based compensation Stock-based compensation and issuance of employee benefit plan stock Issuance of common stock for acquisition activity Balance as of December 31, 2014 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 Issuance of common stock for acquisition activity Balance as of December 31, 2015 Net income 465 44 11,135 (1.837) (511) 1.949 596 IIIIIIIIIIIIII (212) 1 1 1 1 1 1 1 10,741 596 (212) 4 6 4 119 119 2.131 2.131 5 5 13,394 471 (1.837) (723) 2,545 2.371 13,384 2.371 01 Manopolice 6 6 11 1,510 1,510 465 44 11,135 (1,837) (511) 1,949 596 44 10,741 596 (212) 4 Tall! I (212) 6 4 119 Excess tax benefits from stock-based compensation Stock-based compensation and issuance of employee benefit plan stock Issuance of common stock for acquisition activity Balance as of December 31, 2014 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 Issuance of common stock for acquisition activity Balance as of December 31, 2015 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 119 11 2.131 2,131 5 5 13.394 471 (1.837) (723) 2,545 2,371 13,384 2,371 (262) 1 (262) 1 829 829 2.962 5S (1.837) S 17.186 2.962 19,285 477 S (985) S 4.916 S See accompanying notes to consolidated financial statements. O