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Forecast the Statement of Cash Flows The following are the income statements and balance sheets of Amazon.com Inc. AMAZON.COM INC. Consolidated Statement of Operations $

Forecast the Statement of Cash Flows

The following are the income statements and balance sheets of Amazon.com Inc.

AMAZON.COM INC.
Consolidated Statement of Operations
$ millions

2016

Estimated

Dec. 31,

2015

Net product sales $91,158 $79,268
Net service sales 38,833 27,738
Total net sales 129,991 107,006
Operating expenses
Cost of sales 87,094 71,651
Fulfillment 16,249 13,410
Marketing 6,370 5,254
Technology and content 15,209 12,540
General and administrative 2,080 1,747
Other operating expense (income), net 171 171
Total operating expenses 127,173 104,773
Income from operations 2,818 2,233
Interest income 60 50
Interest expense (520) (459)
Other income (expense), net (256) (256)
Total non-operating (expense) (716) (665)
Income (loss) before income taxes 2,102 1,568
Provision for income taxes (799) (950)
Equity-method investment activity, net of tax (22) (22)
Net income (loss) $1,281 $596

AMAZON.COM INC.
Consolidated Balance Sheets
In millions, except par value

2016

Estimated

Dec. 31,

2015

Current Assets
Cash and cash equivalents $22,726 $15,890
Marketable securities 3,918 3,918
Inventories 12,479 10,243
Accounts receivable, net and other 7,799 6,423
Total current assets 46,922 36,474
Property and equipment, net 21,117 21,838
Goodwill 3,759 3,759
Other assets 4,160 3,373
Total assets $75,958 $65,444
Current Liabilities
Accounts payable $24,828 $20,397
Accrued expenses and other 12,609 10,384
Unearned revenue 3,770 3,118
Total current liabilities 41,207 33,899
Long-term debt 7,997 8,235
Other long-term liabilities 12,089 9,926
Stockholders' equity
Preferred stock, $0.01 par value: Authorized shares-500
Issued and outstanding shares-none 0 0
Common stock, $0.01 par value: Authorized shares-5,000
Issued shares-494 and 488 Outstanding shares-471 and 465 5 5
Treasury stock, at cost (1,837) (1,837)
Additional paid-in capital 13,394 13,394
Accumulated other comprehensive loss (723) (723)
Retained earnings 3,826 2,545
Total stockholders' equity 14,665 13,384
Total liabilities and shareholders' equity $75,958 $65,444
CAPEX (Increase in gross Property and equipment)/Net sales 4.3%
Depreciation expense/Prior year gross PPE 28.9%
Dividends $0
Long-term debt payments required in fiscal 2016 $238

Refer to the above financial information for Amazon.com Inc. Prepare a forecast of its FY2016 statement of cash flows.

Round all answers to the nearest whole number. Use negative signs with answers, when appropriate.

Amazon.com Inc

Forecasted Statement of Cash Flows

($ millions)

2016 Est.
Net income
Depreciation
Inventories
Accounts receivable, net and other
Other assets
Accounts payable
Accrued expenses and other
Unearned revenue
Other long-term liabilities
Cash from operating activities
CAPEX
Cash from investing activities
Debt repayment
Cash from financing activities
Change in cash
Cash at start of year
Cash at end of year

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