FURTHER ANALYSIS 4. Prepare common-size income statements for the three years presented, expressing each income statement item as a percentage of total revenue. (Total revenue 100%). (Re-fer to the discussion of vertical analysis in your textbook.) Use a spreadsheet program to do this part of the assignment. Label the spreadsheet "Common Size dnah- sis - Income Statement." List the revenue and expense classifications in column A, the amounts for the three years in columns B. C. and D. In columns E, F. and G, use a formula to convert the amounts to per-centages, a AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) s Year Ended December 31. 2018 2019 141.915 $ 160,408 S 90.972 120.114 232.887. 280.522 2020 215,915 170,149 386,064 Net product sales Net service sales Total net sales Operating expenses: Cost of sales Fulfillment Technology and content Marketing General and administrative Other operating expense (income), net Total operating expenses Operating income Interest income Interest expense Other income (expense), net Total non-operating income (expense) Income before income taxes 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 Diluted 139.156 34.027 28,837 13,814 4,336 296 220,466 12,421 440 (1,417) (183) (1,160) 11,261 (1.197) 9 10,073 $ 20.68 $ 20.14 S 165,536 40.232 35,931 18,878 5,203 201 265,981 14.541 832 (1.600) 203 (565) 13,976 (2,374) (14) 11.588 S 23.46 S 23.01$ 233.307 58,517 42.740 22,008 6,668 (75) 363.165. 22,899 555 (1,647) 2.371 1.279 24.178 (2.863) 16 21,331 42.64 41.83 S S $ 494 500 487 500 504 510 See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Year Ended December 31, 200 32,1735 36,410 21.856 $ 11.38 21,331 10,073 15,341 5,418 274 21,789 6,864 164 (249) 796 25.251 9.205 1) 12,5x2) 219 441 (554) (1,314) (4,615) 3.263 472 1.151 30,723 (3.278) 7.681) 8,193 (1.383) 1.711 38.514 2.849) (8.169) 17.480 5.754 1.265 66,064 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD OPERATING ACTIVITIES: Net income 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 Stock-based compensation Other operating expense (income), net Other expense (income), net Deferred income taxes Changes in operating assets and liabilities: Inventories Accounts receivable, net and other Accounts payable Accrued expenses and other Unearned revenue Net cash provided by used in) operating activities INVESTING ACTIVITIES: Purchases of property and equipment Proceeds from property and equipment sales and incentives Acquisitions, net of cash 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 short-term debt, and other Repayments of short-term debt, and other 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 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD (13.427) 2.104 (2,186) 8.240 (7.100) (12,369) (16,861) 4.172 (2,461) 22,681 (31.812) (24.281) (40,140) 5.096 (2.325) 50,237 (72.479) (59,611) 886 (813) 182 (155) (7,449) (337) (7.686) (351) 10.317 32,173 $ 1.402 (1.518) 871 (1.166) (9.628) (27) (10.066) 70 4.237 36,410 S 6,796 (6.177) 10.525 (1.553) (10.642) (53) (1.104) 618 5.967 42.377 $ See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Year Ended December 31, 2018 2019 S 10,073 $ 11.588 $ 2020 21,331 Net income Other comprehensive income (loss): Net change in foreign currency translation adjustments: Foreign currency translation adjustments, net of tax of S6, S(5), and $(36) Reclassification adjustment for foreign currency translation included in "Other operating expense (income), net," net of tax of $0, $29, and $0 78 (538) 561 (108) (30) (538) 561 (17) 83 273 Net foreign currency translation adjustments Net change in unrealized gains (losses) on available-for-sale debt securities: Unrealized gains (losses), net of tax of So, S(12), and S(83) Reclassification adjustment for losses (gains) included in "Other income (expense), net," net of tax of so, so, and $8 Net unrealized gains (losses) on available-for-sale debt securities Total other comprehensive income (loss) Comprehensive income 8 (4) (28) 79 (9) (547) 9.526 $ 49 245 806 22.137 11,637 $ See accompanying notes to consolidated financial statements