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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 comp respective website. (a) Based on the information contained in these financial statements, compute free cash flow for each company. (Enter answers in millions. Show amounts that decrease cash flow with either a - sign eg. 15,000 or in parenthesis eg. (15,000). Appendix D Specimen Financial Statements: Amazon.com, Inc. imazon.com. Inc, is the worid's langest online retailer. It also produces consumer electronies notably the Kindle e-book reader and the Kindie Fire Tablet computer -and is a major provider of cloud compating services. The following are Amazon's financial statements as presented in the company's 2018 annual report. The complete innual report, including notes to the financial statements, is available at the company's website. Accounts payabte Accrued expenses and other Unearned revenue Net cash provided by (used in) operating activities INVESIING ACTIVITIES: Purchases of property and equipment Proceeds from property and equipment incentives Acquisitions, net of eash acquired, and other Sales and maturities of marketable securities Purchases of marketable securities Net cash provided by (used in) investing activities FINANCING ACTIVITIES: 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 eash, cash equivalents, and restricted cash Net increase (decrease) in cash, cash equivalents, and restricted cash CASH, CASH EQUIVALFNTS, AND RESTRICTED CASH, END OF PERIOD SUPPLEMENTAL. CASH FLOW INFORMATION: Cash paid for interest on long-tern 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 buifd-toisuit leases \begin{tabular}{rrc} (7,804) & (11,955) & (13,427) \\ 1,067 & 1,897 & 2,104 \\ (116) & (13,972) & (2,186) \\ 4.577 & 9,677 & 8,240 \\ (7,240) & (12,731) & (7,100) \\ \hline(9,516) & (27,084) & (12,369) \end{tabular} See accompanying notes to coussoladatcu financtal stareneme. Amazon.com, Inc, Consolidated Statements of Operations (in millions, except per share data) Net product sales Net service sales Total net sales Year Ended December 31 , Operating expensiest Cost of sales Fulfillment Marketing Technology and content General and administrative Other operating expense, net Total operating expenses Operatiny ineome Interest income Interest expense Other income (expense), net Total non-operating income (expense) Income before income taxes Provision for income taxes: \begin{tabular}{rrr} 88,265 & 111,934 & 139,156 \\ 17,619 & 25,249 & 34,027 \\ 77,293 & 10,069 & 13,814 \\ 16,085 & 22,620 & 28,837 \\ 2,432 & 3,674 & 4,336 \\ 167 & 214 & 2996 \\ \hline 131,801 & 173.760 & 12,421 \\ \hline 4,186 & 4,106 & 440 \\ 100 & 202 & (1,417) \\ (484) & (8,48) & (183) \\ \hline 90 & 346 & (1,160) \\ \hline(294) & (300) & 11,261 \\ \hline 3,892 & 3.806 & (1,197) \\ \hline(1,425) & (769) & 206 \\ \hline \end{tabular} Provision for income taxes Equity-method investment activity, net of tax Net income Basic earnings per share Diluted earnings per share Weighted-average shares used in computation of earnings per share: Basic Dilated Net income Sec accorrpanying notes to coosolidated financial statementa. Amazon-com, Inc. Consolidated Statements of Comprehensive Income (in millions) Other comprehensive income (loss): Foreign curency tranulation adjustments, net of tax of $49), $5, and $6 Year Lnded December 31, Net change in unrealized gains (losses) on available-fof-tale debt securities! Unrealized gains (lossers), net of tax of $(12),$5, and $0 Reclassification adjustment for loses (gains) incladed in "Other income (expense), net," net of tax of $0,$0. and $0 Net unrealized gains (locses) on available-for-sale debt securities Total other comprehensive incone (loss) Comprehensive income See accompanying notes to consolidated financial statements. Amazon.com, Inc, Consolidated Balance Sheets (in millions, exeept per share data) ASSETS Current assets: 1.IABIIITIES AND STOCKHOLDEIRS' EQUTTY Current liabilities: Accounts payable Acerued expenses and other Unearned revenue Total current liabilitien \begin{tabular}{rr} $34,616 & $38,192 \\ 18,170 & 23,663 \\ \hline 5,097 & 6,536 \\ \hline 57,883 & 68,391 \\ 24,743 & 23,495 \end{tabular} Amazon.com, ne. Consolidated Statements of Stockholders' Equity Appendix E Specimen Financial Statements: Walmart Inc. The following are Walmart Inci's financial statements as presented in the company's zong annual report. The complete anmual report, including notes to the finane statements, is aywilahle at tha enimnanv's wehsite. Membership and other income Total revenues Costs and expenses: Cost of sales Operating, selling, general and administrative expenses Operating income 514,4054,076500,3434.582485,8734.556 Interest: Debt Capital lease and financing obligations Interest income interest, net Loss on extinguishment of debt Other (gains) and losses Income before income taves Provision for income taxes Connolidated net income Net incone per common share: BasicnetincomepercommonshareattributabletoWalmartDilutednetincomepercommonshareattributabletoWalmart$2.262.283.28$3.29$40 Weighted-average common shares outstanding: Bastic TNilutall. 2,929 2,945 Weighted-average common shares outstanding: Basc Diluted Dividends declared per common share See acconypanying notes. (Amounts in millions) Consolidated net income Consolidated net income attributable to noncontrolling interest. Consolidated net income attributable to Walmart onsolidated Statements of Comprehensive Income Fiscal Years Ended January 314 Other comprehensive income (loss), net of income taxes. Currency translation and other. Net investment hedges Cash flow hedges Minimum pension liability Unrealized gain on available-for-gale securities : Other comprehensive income (loss), net of income taxes Other somnrehensive (income) loss attributable to noncontrolling interest. Comprehensive (income) loss attributable to noncontrolling interest Comprehensive income attributable to Walmart See accumpanying notes, Walmart Ine. Consolidated Balance Sheets (Amounfs in millions) ASSETS Current assets: CashandcashequivalentsRecivables,thetInventoriesPrepaidexpensesandotherTotalcurrentassets$7,7226,28344,2693,62361,8975,7565,61443.7833,51159,664 Property and equipment: \begin{tabular}{lll} Property and equipment & 185,810 & 185,154 \\ Less accumulated depreciation & (81,493) & (77,479) \\ \hline Property and equipment, net: & 104,317 & 107,675 \end{tabular} Property under eapital lease and financing obligations: Property under capital lease and financing obligations Less accumulated amortization Property under capital lease and financing obligations, net. Goodwill Other long-term assets Property under capital lease and financing obligations: Less accumulated amortization Property under capital lease and financing obligations, net Goodwill Other long-term assets Total assets LABILITIES AND EQUITY Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Capital lease and financing obligations due within one year Total current liabilities Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Capital lease and financing obligations due within one year Total current liabilities Long-term debt Long-term capital lease and financing obligations Deferred income taxes and other Commitments and contingencies Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total Walmart shareholders' equity Noncontrolling interest Total equity Total liabilities and equity 43,5206,68311,98130,0456,7808,354 Sop acopmomina motios