FURTHER ANALYSIS 4. Prepare common-size balance sheets for the two years presented, expressing each bal- ance sheet item as a percentage of total assets (Total assets - 100%). (Refer to the discussion of vertical analysis in the financial statement analysis chapter of your text.) Use a spreadsheet program such as Excel to do this part of the assignment. Label the spreadsheet"Common Size Analysis - Balance Sheet." Insert the accounts and classifications in column A and the amounts for each of the two years in columns B and C. In columns D and E, use a formula to convert the amounts in columns B and C to percentages. AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 2019 ASSETS Current assets 2 36,0925 1R 929 20.497 30.816 96 314 72.705 25.141 14,754 16314 225.2485 42.122 42.274 23,795 34 342 132.733 113.114 37553 15.017 22,778 321,195 47.1835 32.439 R_190 87 512 39,791 23,414 12,171 72.339 44.135 9.705 126,385 52.573 31.816 17,017 Cash and cash equivalents $ Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, act Operating leases Goodwill Other assets Total assets 5 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable s Accrued expenses and other Uncamned revenue Total current liabilities Long-term lease liabilities 4 Long-term debt Other long-term liabilities Commitments and contingencies (Note ) Stockholders' equity: Preferred stock. 50.01 par value: Authorized shares - 500 Issued and outstanding shares-none Common stock, 30.01 par value Authorized shares - 5,000 Issued shares-521 and 527 Outstanding shares - 498 and S03 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive income (loss) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity s See accompanying notes to consolidated financial statements 5 (1.837) 33.638 (986) 31.220 62,060 225.248 S 5 (1.837) 42.865 (180) 52.551 93,404 321,195 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in millions) Total Stockery Fulty Common Stock Accumulated Additional Other Treasury Paid In Comprehensive Amount Stock Capital Income (Loss) 5 $ (1.837) $ 21,389 $ Retained Earnings (484) $ 8,636 $ 27,709 (4) 916 10,073 912 10,073 (547) (547) 5,402 26,791 5,402 43,549 (1,035) 19,625 (1.837) 7 11.588 11,588 Shares Balance as of January 1, 2018 484 5 Cumulative effect of change in accounting principles related to revenue recognition income taxes, and financial instruments Net income Other comprehensive income (loss) Exercise of common stock options Stock-based compensation and issuance of employee benefit plan stock Balance as of December 31, 2018 491 Cumulative effect of change in accounting principle related to leases Net income Other comprehensive income (loss) Exercise of common stock options 7 Stock-based compensation and issuance of employee benefit plan stock 6,867 Balance as of December 31, 2019 498 5 (1.837) 33,658 Net income Other comprehensive income (loss) Exercise of common stock options S Stock-based compensation and issuance of employee benefit plan stock 9.207 Balance as of December 31, 2020 503 S SS (1,837) $ 42,865 S See accompanying notes to consolidated financial statements. 49 49 III Ili II (986) 31,220 21,331 6,867 62,060 21,331 806 806 9,207 (180) $ 52,551 $ 93,404