Corporate Life Cycle Problem: Instructions: 1: Enter the Net cash provided (used) for each business activity" from a public company's Statement of Cash Flows for 2020. 2: Identify the likely phase in the company's corporate life cycle. Company (2020 Annual Report) Company Name Net cash provided (Used) by Operating Activities Net cash provided (Used) by Investing Activities Net cash provided (Used) by Financing Activities Likely Phase in the Company's Corporate Life Cycle CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) Year Ended December 31, 2018 2019 2020 Net product sales Net service sales Total net sales Operating expenses: Cost of sales Fulfillment $ 141,915 $ 160,408 $ 215,915 90,972 120,114 170,149 232,887 280,522 386,064 139,156 165,536. 233,307 34,027 40,232 58,517 Technology and content 28,837 35,931 42,740 Marketing 13,814 18,878 22,008 General and administrative 4,336 5,203 6,668 Other operating expense (income), net 296 201 (75) Total operating expenses 220,466 265,981 363,165 Operating income 12,421 14,541 22,899 Interest income 440 832 555 Interest expense (1,417) (1,600) (1,647) Other income (expense), net Total non-operating income (expense) Income before income taxes Provision for income taxes (183) 203 2,371 (1,160) (565) 1,279 11,261 13,976 24,178 (1,197) (2,374) (2,863) Equity-method investment activity, net of tax 9 (14) 16 Net income S 10,073 $ 11,588 $ 21,331 Basic earnings per share $ 20.68 $ 23.46 $ 42.64 Diluted earnings per share $ 20.14 $ 23.01 $ 41.83 Weighted-average shares used in computation of earnings per share: Basic Diluted 487 494 500 500 504 510 CONSOLIDATED BALANCE SHEETS (in millions, except per share data) ASSETS December 31, 2019 2020 Current assets: Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Operating leases Goodwill $ 36,092 $ 42,122 18,929 42,274 20,497 23,795 20,816 24,542 96,334 132,733 72,705 113,114 25,141 37,553 14,754 15,017 Other assets 16,314 22,778 Total assets $ 225,248 $ 321,195 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 47,183 $ 72,539 Accrued expenses and other 32,439 44,138 Unearned revenue 8,190 9,708 Total current liabilities 87,812 126,385 39,791 52,573 23,414 31,816 12,171 17,017 Long-term lease liabilities 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-521 and 527 Outstanding shares-498 and 503 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive income (loss) Retained earnings 5 5 (1,837) (1,837) 33,658 42,865 (986) (180) 31,220 52,551 Total stockholders' equity 62,060 93,404 Total liabilities and stockholders' equity $ 225,248 $ 321,195 CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Year Ended December 31, 2018 2019 2020 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD $ 21,856 $ 32,173 $ 36,410 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 219 (249) (2,582) 441 796 (554) (1,314) (3,278) (2,849) (4,615) (7,681) (8,169) Accounts payable 3,263 8,193 17,480 Accrued expenses and other 472 (1,383) 5,754 Unearned revenue 1,151 1,711 1,265 Net cash provided by (used in) operating activities 30,723 38,514 66,064 INVESTING ACTIVITIES: Purchases of property and equipment (13,427) (16,861) (40,140) Proceeds from property and equipment sales and incentives 2,104 4,172 5,096 Acquisitions, net of cash acquired, and other (2,186) (2,461) (2,325) Sales and maturities of marketable securities 8,240 22,681 50,237 Purchases of marketable securities (7,100) (31,812) (72,479) Net cash provided by (used in) investing activities (12,369) (24,281) (59,611) FINANCING ACTIVITIES: Proceeds from short-term debt, and other 886 1,402 6,796 Repayments of short-term debt, and other (813) (1,518) (6,177) Proceeds from long-term debt Repayments of long-term debt Principal repayments of finance leases Principal repayments of financing 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 182 871 10,525 (155) (1,166) (1,553) (7,449) (9,628) (10,642) (337) (27) (7,686) (10,066) (53) (1,104) (351) 10,317 70 618 4,237 5,967 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD $ 32,173 $ 36,410 $ 42,377