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inancial Statements: Amazon.com, Inc. c. is the world's largest online retailer. It also produces consumer electronics-notably the Kindle e-book reader and the Kindle Fire
inancial Statements: Amazon.com, Inc. c. is the world's largest online retailer. It also produces consumer electronics-notably the Kindle e-book reader and the Kindle Fire Tablet computer-and is a major provider of cloud computing services. The following nted in the company's 2018 annual report. The complete annual report, including notes to the financial statements, is available at the company's website. Amazon.com, Inc. Consolidated Statements of Cash Flows (in millions) Year Ended December 31. 2016 2017 2018 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD OPERATING ACTIVITIES: $16,175 $19.934 $21,856 Net income Adjustments to reconcile net income to net cash from operating activities: 2.371 3,033 10,073 Depreciation of property and equipment and other amortization, including capitalized content costs 8.116 11,478 15341 Stock-based compensation 2.975 4.215 541 Other operating expense, net 100 202 274 Other expense (income), net (20) (202) 210 Deferred income taxes (046) (29) 441 Changes in operating assets and liabilities: Inventories (1.426) (3.583) 0314) 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 incentives Acquisitions, net of cash acquired, and other (3-436) (4.780) (4.615) 5030 7,100 3.263 1724 283 473 955 25 17,203 18365 30,723 (704) (11.955) (13-427) 1,067 1,897 (116) (13.972) 2,104 (0180) Sales and maturities of marketable securities 4377 9,677 8,240 Purchases of marketable securities (7240) (12.731) (7100) Net cash provided by (used in) investing activities (9316) (27.084) (12,369) FINANCING ACTIVITIES: Proceeds from long-term debt and other 618 16,228 768 Repayments of long-term debt and other (327) (1,301) (668) Principal repayments of capital lease obligations (3.860) (4.799) (7.440) Principal repayments of finance lease obligations (147) (200) (337) Net cash provided by (used in) financing activities (3.716) 0,928 (7,086) Purchases or markerause secunues 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 cash, cash equivalents, and restricted cash Not increase (decrease) in cash, cash equivalents, and restricted cash CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on long-term 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 build-to-suit leases V49 Vabuy (9.516) (27,084) (12,369) 618 16,228 768 (327) (1,301) (668) (3,860) (4.799) (7.449) (147) (200) (337) (3.716) 9.928 (7,686) (212) 733 (351) 3.759 1,922 10.317 $19.934 $21,856 $32.173 $ 290 $ 328 $ 854 206 319 575 412 957 1,1841 5.704 9,637 10,615 1,200 3.541 3.641 Net product sales Net service sales Total net sales Operating expenses: Cost of sales Fulfillment Marketing See accompanying notes to consolidated financial statements Amazon.com, Inc. Consolidated Statements of Operations (in millions, except per share data) Year Ended December 31. 2016 2017 2018 $94,665 $118.573 $141,915 41.322 59.993 90,972 135.987 177,866 232,887 88,265 111,934 139,156 17,019 25.249 34,027 7.233 10,009 13.814 Technology and content 16,085 22,620 28,837 General and administrative 2.432 3.674 4336 Other operating expense, net 167 Total operating expenses 131,801 Operating income 4.186 Interest income t 100 214 173.760 4.106 202 220,466 12.421 296 Interest expense (484) (848) 440 (1,417) Other income (expense), net. 90 346 (183) Net product sales Net service sales Total net sales Operating expenses: Cost of sales Fulfillment See accompanying notes to consolidated financial statements. Amazon.com, Inc. Consolidated Statements of Operations (in millions, except per share data) Year Ended December 31, 2018 $141,915 90,972 232,8871 2016 $94,665 2017 $118,573 41,322 59.293 135.987 177,866 88,265 111,934 139.156 17,619 25.249 34.027 Marketing 7.233 10,069 13.814 Technology and content 16,085 22,620 28,837 General and administrative 2,432 3.074 4.336 Other operating expense, net 167 214 Total operating expenses 131,801 173,760 Operating income 4.186 Interest income Interest expense Other income (expense), net Total non-operating income (expense) Income before income taxes 100 4.106 202 296 220,466 12,421 440 (484) (848) (1,417) 90 346 (183) (294) (300) (1,160) 3.892 3,806 Provision for income taxes (1.425) (769) 11,261 (1,197) Equity-method investment activity, net of tax (96) (4) 9 Net income $ 2.371 $3.033 $ 10,073 Basic earnings per share: $ 5.01 $ 6.32 $ 20.68 Diluted earnings per share $ 4.99 $ 6.15 $ 20.14 Weighted-average shares used in computation of earnings per share: Basic 474 480 487 Diluted 484 493 500 Son anamnamin naked in consolidated financial att Amazon.com, Inc.. Consolidated Statements of Comprehensive Income (in millions) 2016 Net income Other comprehensive income (loss): Foreign currency translation adjustments, net of tax of $(49), $5, and $6 Net change in unrealized gains (losses) on available-for-sale debt securities: Unrealized gains (losses), net of tax of $(12), $5, and $0 Reclassification adjustment for losses (gains) included in "Other income (expense), net," net of tax of So, so, and so $2,371 Year Ended December 31, 2017 $3,033 2018 $10,073 (279) 533 Net unrealized gains (losses) on available-for-sale debt securities Total other comprehensive income (loss) Comprehensive income (262) 501 (547) $2,109 $3.534 $9,526 See accompanying notes to consolidated financial statements. SELL. (39) Z (32) (538) (17) Amazon.com, Inc. Consolidated Balance Sheets (in millions, except per share data) ASSETS December 31, 2017 2018 Current assets: Cash and cash equivalents $20,522 $ 31,750 Marketable securities 10.464 9.500 Inventories 16,047 17,374 Accounts receivable, net and other 13.164 16,677 Total current assets 60,197 75,101 Property and equipment, nett 48,866 61,797 Goodwill 13.350 14548 Other assets 8,897 11.202 Total assets $131.310 $162,648 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other Unearned revenue Total current liabilities - Long-term debt $ 34,016 18,170 5,097 57.883 68.391 24.743 23-495 $ 38,192 23,663 0.336 ASSETS Current assets: Cash and cash equivalents $ 20,522 $31,750 Marketable securities 10,464 9.500 Inventories 16,047 17,174 Accounts receivable, net and other 13,164 16,677 Total current assets 60,197 75,101 Property and equipment, net 48,866 61,797 Goodwill 13,350 14,548 Other assets 8,897 11,202 Total assets $131,310 $162,648 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 34,616 $ 38,192 Accrued expenses and other 18,170 23,663 Unearned revenue 5,097 6,536 Total current liabilities 57,883 68,391 Long-term debt 24,743 23.495 Other long-term liabilities 20,975 27,213 Commitments and contingencies (Note 7) Stockholders' equity: Preferred stock, $0.01 par value: Authorized shares-500 Issued and outstanding shares-none Common stock, $0.01 par value: Authorized shares-5,000 Issued shares-507 and 514 Outstanding shares-484 and 491 5 5 Treasury stock, at cost (1,837) (1,837) Additional paid-in capital 21,389 26,791 Accumulated other comprehensive loss (484) (1,035) Retained earnings 8,636 19,625 Total stockholders' equity 27.709 43.549 Total liabilities and stockholders' equity $131,310 $162,648 See accompanying notes to consolidated financial statements. Balance as of January 20 Net income Other comprehensive income (a) Exercise of common stock options Excess tax benefits from stock based compensation Stock-based compensation and bosance of employee be plan stock Balance as of December 31, 2016 Cumulative effect of a change in accounting principled stock-based compensation Net income Other comprehensive income) Exercise of common stock options OUR 113394 (37) 809 $1545 $034 2.374 23 (000) (a) Stock had pensation and ice of employee benefit plan stock Balance as of December 03) (484) Cumulative effect of dunges in accounting principles related to revenue recognitum, income taxes, and financial Other competence) Ease of common stock opt Mock-und compensation and an offi plansork las of D 80 4016 10,395 331 3033 (4) 916 10,073 (647) (47) MORAD KLAS) Current Attempt in Progress * Your answer is incorrect. 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 company's 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 e.g. (15,000).) Amazon Free cash flow $ 9,399 Walmart 11,307 Walmart Inc. (Amounts in millions, except per share data) Revenues: Net sales Membership and other income Consolidated Statements of Income Fiscal Years Ended January 31. 2019 2018 2017 $510,329 4.076 $495,761 4.582 $481,317 4.556 Total revenues 514.405 500,343 485,873 Costs and expenses: Cost of sales 385.301 373.396 361,256 Operating, selling, general and administrative expenses 107.147 106,510 101,853 Operating income 21,957 20,437 22,764 Interest: Debt 1,975 1,978 2,044 Capital lease and financing obligations 371 352 323 Interest income (217) (152) (100) Interest, net 2,129 2,178 1 2,267 Loss on extinguishment of debt Other (gains) and losses Income before income taxes Provision for income taxes 3.136 8,368 11,460 15.123 20,497 4.281 4,600 6,204 Consolidated net income Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart Net income per common share: 7.479 10.523 14.293 (509) (661) (650) $ 6,670 $ 9,862 $ 13.643 Basic net income per common share attributable to Walmart Diluted net income per common share attributable to Walmart $ 2.28 $ 2.26 3.29 3.28 $ 4-40 4-38 Weighted-average common shares outstanding: Basic Diluted nioldande declared ner common share. 2,929 2,995 3,101 2,945 3,010 3.112 2.08 2.04 2.00 Weighted-average common shares outstanding: Basic 2,929 2,995 3,101 Diluted 2,945 3,010 3.112 Dividends declared per common share See accompanying notes. Walmart Inc. 2.08 2.04 2.00 Consolidated Statements of Comprehensive Income Fiscal Years Ended January 31, (Amounts in millions) 2019 2018 2017 Consolidated net income $7.179 $10,523 $14,293 Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart (509) (661) (650) 6,670 9,862. 13.643 Other comprehensive income (loss), net of income taxes Currency translation and other (226) 2,540 (3,027) Net investment hedges Cash flow hedges 272 (405) 413 (290) 437 21 Minimum pension liability 131 147 (397) Unrealized gain on available-for-sale securities 1,501 145 Other comprehensive income (loss), net of income taxes (113) 4.220 (2,845) Other comprehensive (income) loss attributable to noncontrolling interest 188 (169) 210 Other comprehensive income (loss) attributable to Walmart 75 4,051 (2,635) Comprehensive income, net of income taxes 7,066 14.743 11,448 Comprehensive (income) loss attributable to noncontrolling interest Comprehensive income attributable to Walmart (321) (830) (440) $6.745 $13.913 $11,008 See accompanying notes. Walmart Inc. Consolidated Balance Sheets As of January 31, (Amounts in millions) 2019 2018 ASSETS Current assets: Cash and cash equivalents - $ 7,722 $ 6,756 Receivables, net Inventories 6,283 44.260 5,614 43.283 (Amounts in millions) ASSETS Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets Property and equipment: Walmart Inc. Consolidated Balance Sheets As of January 31, Property and equipment Less accumulated depreciation Property and equipment, net Property under capital lease and financing obligations: 2019 2018 7,722 $ 6,756 6,283 5,614 44,269 43.783 3.623 3.511 61,897 59,664 185,810 185,154 (81,493) (77.479) 104,317 107,675 Property under capital lease and financing obligations cess accumulated amortization 12,760 12,703 (5.682) (5.560) Property under capital lease and financing obligations, net 7,078 7,143 Goodwill 31,181 18,242 Other long-term assets 14,822 11,798 Total assets $219.295 $204,522 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings Accounts payable 5,225 47.060. $ 5,257 Accrued liabilities Accrued income taxes 22,159 428 46,092 22,122 645 Long-term debt due within one year 1,876 3.738 Capital lease and financing obligations due within one year Total current liabilities 729 667 77-477 78,521 Long-term debt Long-term capital lease and financing obligations Deferred income taxes and other 43-520 30,045 6,683 6,780 11,981 8,354 Commitments and contingencies (in) Balances as of February 1, 2016 Codal t Other open() Cash deeds decland (200 per shar Phase Company stock) Cash dividend de Expulty Comm Capital in eo of paral Being Accdated other cond Total Walmart sunn Sing t Talal nity Total liabilities and equity Common Mock Expital in Excess of Par Share Amount 3307 Us (60) 070 Balances as of Jary 31, 201 3048 5 Other compdenne me Do pt of it Cash didenda del (p Phase of Company stick (0) Gol Col Ca dd dad to Balances as of January 31, 201 Adoption of new acting standinde B (isp) 00190 7634 ange Walmart la Consolidated Statements of Shareholders' Equity Retained Earnings 13643 (2) (0) 8.354 w Accumulated Other Comprehensive Income (L) Total Walmart Shareholder Equity Noncontrolling Interest Total Equity 33005 SEL 1143 14790 (w) (245) 16,214) (476) (5) 120 IH) 3237 335 103 (6074) 18300 404 06.04) 15300 160) 23 M DA (6) 944 E 527PM Cash dreads desland ($20 per share) Purchine of Company stock Cash divided declared to Nelling int Balances as of January 31, 2010 163003 Dap 0.00 (A) Cash flows from uperating activities #zals bann Und (pen) Langshest af des Accounts payable 200 HI () 049) (60)) 174 C Walmart Inc. Consolidated Statements of Cash Flows Fiscal Years Foded January 3 Net can provided by opsting activit Cash flows from investing activities Proceeds from the dopal of peoperty and opposit Prods the dispnal of stain operates Pancha of Pay able for boat of a d Other investing activities 334 (ww) (y)) D (ok A (367) 3 (34) (0) 378 A (100) 416 (101) (75) 100 30 436 4345 354 Inventories Accounts payable Accrued liabilities Accrued income taxes Net cash provided by operating activities Cash flows from investing activities: (1,311) (140) 1,021 1.831 4.086 3.942 183 928 1,280 (40) (557) 492 27.753 28,337 31,673 Payments for property and equipment (10,344) (10,051) (10,619) Proceeds from the disposal of property and equipment 519 378 456 Proceeds from the disposal of certain operations 876 1,046 662 Purchase of available for sale securities (1,901) Payments for business acquisitions, net of cash acquired Other investing activities (14,656) (375) (2.463) (431) (77) (31) Net cash used in investing activities (24.036) (9,079) (13,896) Cash flows from financing activities: Net change in short-term borrowings Proceeds from issuance of long-term debt Repayments of long-term debt Premiums paid to extinguish debt Dividends paid Purchase of Company stock Dividends paid to noncontrolling interest Purchase of noncontrolling interest Other financing activities Net cash used in financing activities Effect of exchange rates on cash, cash equivalents and restricted cash Net increase (decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash at beginning of year Cash, cash equivalents and restricted cash at end of period Supplemental disclosure of cash flow information: Income taxes paid Interest paid Cuina nates (53) 4.148 (1.673) 15.872 7.476 137 (3.784) (13,061) (2.055) (3.059) (6,102) (6,124) (6,216) (7.410) (8,296) (8,298) (431) (690) (479) (8) (90) (629) (261) (398) (2.537) (19,875) (19,072) (438) 487 (452) 742 (130) (1,747) 7,014 7.144 8,891 $7.750 $7,104 $7.144 3.982 6,179 4.507 2.348 2,450 2.351
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