Expand Your Critical Thinking 7-3 (Part Level Submission) The financial statements of Amazon.com, Inc. are presented in Appendix D Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E Answer the following questions for each company (a) Your answer is correct What is the balance in cash and cash equivalents at December 31, 2014? (Enter the amounts in millions.) Cash and cash equivalents Amazon.com 14557 Wal-Mart Stores LINK TO TEXT Your answer is correct what percentage of total assets does cash represent for each company for the year 2014 and 2013? (Round answers to 1 decimal place, eg. 15.2%.) Cash as of total assets 2014 2013 Amazon.com Wal-Mart Stores SHOW ANSWER INK TO TEXT (c) How much cash was provided by operating activities during 2014 (Enter the amounts in millions.) Cash was provided by operating activities Amazon.comm Wal-Mart Stores AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Year Ended December 31 2014 2013 2012 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD OPERATING ACTIVITIES: Net income (loss) Adjustments to reconcile net income (loss) to net cash from operating activities: 8,658 S 8,084 S (241) 274 Depreciation of property and equipment, including intenal-use software and website development, and 4,746 1,497 129 other amortization Stock-based compensation Other operating expense (income), net Losses (gains) on sales of marketable securities, net Other expense (income), nct Deferred income taxes Excess tax benefits from stock-based compensation 2,159 833 154 1,134 62 (265) (78) Changes in operating assets and liabilities: Accounts receivable, net and other Accounts payable Accrued expenses and other Additions to uncarned revenue Amortization of previously unearned revenue (1,410) (846) 1,888 736 (1,039) 1,759 706 (861) 1,038 1,796 (1,521) 4,180 (3,692) 6,842 (2,292) 5,475 Net cash provided by (used in) operating activities INVESTING ACTIVITIES Purchases of property and equipment, including internal-use software and website development Acquisitions, net of cash acquired, and other Salcs and maturities of markctable securitics and other investments Purchases of marketable securities and other investments (4,893) (979) (3,444) (3,785) (2,542) (5,065) (3,302) (3,595) Net cash provided by (used in) investing activities (4,276) FINANCING ACVITIES: Excess tax benefits from stock-based compensation Common stock repurchased Procceds from long-term debt and other Repayments of long-term debt Principal repayments of capital lease obligations Principal repayments of finance lease obligations 6,359 3,378 (82) (231) (1,285) (135) 4,432 (310) 5,899 Net cash provided by (used in) financing activities 2,259 (29) (539) Foreign-currency effect on cash and cash equivalents Nct incrcasc (decrcasc) 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 income taxes (net of refunds) Property and equipment acquired under capital leases Property and equipment acquired under build-to-suit leases 574 14,557 S 8,658 S 8,084 4,008 1.867 802 Sce accompanying notes to consolidated financial statements. AMAZONCOM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, exeept per share data) CONSOLIDATED STATEMENTS OF OPERATIONS in millions, except per share data) Year Ended December 31 2012 Net produet sales Net scrvicc salcs 70,080$ 18,908 88,988 60,903 $ 13,549 74,452 51,733 9360 61,093 Total net sales Operating expenses (1): 62,752 10,766 4,332 9,275 1,552 133 88,810 178 39 (210) 45,971 6,419 2,408 Cost of sales Fulfillment Marketing Technology and content General and administrative Other operating expense (income), net 54,181 3,133 6,565 896 159 60,417 676 40 Total operating expenses 73,707 145 38 Income from operations Interest income Interest cxpense Other income (expense), net 136 Total non-operating income (expense) Income (loss) before income taxes Provision for income taxes Equity-method investment activity, net of tax Net income (loss) Basic eamings per share Diluted eamings per share Weighted average shares used in computation of camings per share: 506 (161) (428) (155) (167) (241) S (052) $ (0.52) S 274 (0.09) (0.09) 0.60 $ 462 453 Diluted 462 465 453 (1) Includes stock-based compensation as follows: Fulfillment Technology and content General and administrative 125 804 193 603 434 126 accompanying notes to consolidated financial AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME in millions) Year Ended December 31 2013 2012 Net income (loss) Other comprehensive income (loss) Foreign currency translation adjustments, net oftax of S(3), S(20), and S30) Net change in unrealized gains on available-for-sale securities: 76 Unrealized gains Closses), net of tax of $1,$3, and S(3) Reclassification adjustment for losses (gains) included in Other income (expense), net," net oftax ofS(1), $(1), and S3 Net unrealized gains (losses) on available-for-sale securities Total other comprehensive income (loss) (326) Comprehensive income (loss) 328 S AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31 2014 Current assets Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other 14,557 S 8,658 3,789 7,411 4,767 24,625 10,949 2,655 2,859 5,612 31,327 6,967 3,319 2,892 54.505 Total current assets Property and equipment, net Goodwill Other assets Total assets 40,159 Current liabilities: 16,459 S 15,133 6,688 1,159 Accounts payable 9,807 1,823 28,089 8,265 7,410 expenses and other Uneaned revenue Total current liabilities Long-term debt Other long-term liabilities Commitments and contingencies (Note 8) Stockholders' equity: 3,191 4,242 Preferred stock, S0.01 par value: Authorized shares 500 Issued and outstanding shares-none Common stock, $0.01 par value: Authorized shares -5,000 Issued shares-488 and 483 Outstanding shares465 and 459 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive loss Rctained carnings (1,837) 9,573 (185) 2,190 9,746 40,159 (1,837) 11,135 (511) 1,949 Total stockholders' equity 10,74 Total liabilities and stockholders' equity 54,505 S Sce accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in millions) Common Stock Accamulated Other Comprehensive Income (Lass) Stockhalders Steck Farnings Balance as of January 1,2012 455 S 5 S (877) 6,990 S (316) 1,955 S 7,757 Accumulated other comprehensive loss Retained carnings (185) 2,190 9,746 4,505 S 40,159 (511) Total stockholdens' cquity 10,741 Total liabilities and stockholders' equity See accompanying notes to consolidated financial statements. AMAZON.COM, INC CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in millions) Common Stack Accumulated Other Comprehessise Inceme (Lass) Tressur Capital Equity Balance as of January 1, 2012 455 S 5 S (877) 6,990 S (316) 1,955 S 7,757 (39) (960) (960) 429 Stock-based compensation and issuance of Issuance of common stock for acquisition actirvity Balance as of December 31, 2012 454 (1,837) 8,347 Exercise of common stock options Excess tax benefits from stock-based Stock-based compensation and issuance of Balance as of December 31, 2013 (1,837) 9,573 2,190 Excess tax benefits from stock-based Stock-based compensation and issuance of Issuance of common stock for acquisition activity 1510 Balance as of December 31, 2014 465 S 5 S (1,837) S 11,135 S (511) $ 1,949 S10,741 See accompanying notes to consolidated financial statements. Wal-Mart Stores, Inc. Consolidated Statements of Income Fiscal Years Ended January 31 (Aounts in wilions, e.xcept per share data) Revenues: 2015 2014 2013 $ 482.229 473,076 3,218 476,294 465.604 3,047 468,651 Net sales Membership and other income 3422 Total revenues 485,651 Costs and expenses: 352,297 88.629 27,725 Cost of sales 365,086 358,069 91,353 26,872 Operating. selling, general and administrative expenses 93.418 Operating income Debt Capital leases Interest income 2.161 1.977 300 263 (119) 2,216 272 (186) Interest, net 2.348 2,063 Income from continuing operations before income taxes 24,799 25.662 Provision for income taxes: 8,619 7,976 19) 7.985 16,814 285 17.099 (514) (18) Total provision for income taxes Income from continuing operations Income from discontinued operations, net of income taxes Consolidated net income Less consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmat 16,55 17.704 52 17.756 757) 144 16,695 (673) S 16,363 16,022 6,999 Basic net income per common share: S 5.0 487 5.03 Basic income per common share from continuing operations attributable to Walmart Basic income per common share from discontinued operations attributable to Walmart 0.06 Basic net income per common share attributable to Walmart S 5.07 4.90S 5.04 Diluted net income per common s Diluted income per common share from continuing operations attributable to Walmart Diluted income per common share from discontinued operations attributable to Walmart S 4.99 4855.01 0.06 0.03 Diluted net income per common share attributable to Walmart Weighted-average common shares outstanding: Basic 3.374 Diluted 3,243 3.389 Dividends declared per common share S 92 18859 See accoipanying notes Wal-Mart Stores, Inc. Consolidated Statements of Comprehensive Income Fiscal Years Ended January 31 Amounts in miltions Consolidated net income 2015 2014 2013 S 17.099 6.695 17.756 Less consolidated net income attributable to nonredeemable n (736) (606) (684) LIABILITIES, REDEEM ABLE NONCONTROLLING INTEREST, AND EQUITY Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Obligations under capital leases due within one year Current liabilities of discontinued operations 1,592 S 7,670 37.415 18,793 966 4,103 309 1,021 Total current liabilities 65.272 Long-term debt Long-term obligations under capital leases Deferred income taxes and other 41,086 2.606 8,805 41,771 2.788 Redeemable noncontrolling interest 1.491 Common stock Capital in excess of par value Retained eamings Accumulated other comprehensive income (loss) 2.462 85,777 (7,168) 81,394 ,543 85.937 (2,996) 76,255 5,084 Total Walmart shareholders' equity Total equity Total liabilities, redeemable noncontrolling interest, and equity 203.706 S See accompanying notes. Wal-Mart Stores, Inc. Consolidated Statement of Shareholders' Equity and Redeemable Noncontrolling Interest Total Accumulated Other Walmart Nonredeemable Redeemable Common Stock Excess of Retained Comprehensive Shareholders' Noncontroling TotaNoncontrolling Amounts in millions Balances as of February I. Shares Amout Par Value Earnings Income Interest Equity Interest 3418 S 342 3.692 68.69 S (1.410) $ 71,315 S 4,446 $ 75.76 2012 Consolidated net income Other comprehensive income, 16.999 16.999 684 17.683 73 823 823 51 net of income taxes Cash dividends declared ($1.59 per share) Purchase of Company stock (5361) (5.361) 5.361) - (357) 7.341) 7.709) interest of acquired entity 276 (66) 5,395 81.738 595 16,617 (311) 2.720) (6,139) 6.557) 285 (342) Balances as of January 31, 332 3.620 72.978 (587) 2013 Consolidated net income Other comprehensive loss, net of income taxes Cash dividends declared ($1.88 per share) Purchase of Company stock -16.022 16,022 78 (2,409) (6.139) (6,139) 294) (6.254) 6.557) 21014 736 17.099 Oher comprchensive incone. net of income taxes Cash dividends declared ($1.92 per share) Purchase of Compary stock Purchase of reddeemable noecontrolling interest (4,172) 546) (4,718) (6,185) 6,185) 1491) 618) Balances as of January 31, 3.228 3232462 $85,777 7,168) 81,304 S 543 $85,937 See accomparying aoes Wal-Mart Stores, Inc. Consolidated Statements of Cash Flows Fiscal Years Ended January 31. Amunts n s Cash flows from operaring activities: 2014 $ 17.099 % 16.695 $ 17,736 Consolidated net income Income from discontinued operations, net of income taxes Income fromn continuing operations Adjustments to reconcile income from continuing operations to net cash provided by operating activities: 285) 44) 16.814 16.331 17.704 8,870 Deferred income taxes Other operaing activities Changes in certain assets and liabilities, net of effects of acquisitions 503) 785 602 2,759 1,06 1,229) 2678 1.249 166 8 564 (1,667) Accounts payable Aecrued liabilities Accrued income tanes 103 1,224 23,257 Net cash provided hy operaning activities 5,591 Cash nows rom investing activities: (13,115 (12.174) 570 Paymcets for property and equipment Proceeds frons the disposal of property and equipment Proceeds from the disposal of certain operations Other investing activities 271 Net cash uved in investing activities (11.125) (12.526 2637 Cash flows from financing activities: Net change in short-term borrowings Proceeds from issuance of long-term debt Puyments of long tern deht Dividends paid Purchase of Company stock Dividends paid to nonconcrolling iaterest Purchase of noncontrolling interest Other financing activities 6.288) 2,754 3.904) 6,185)