Please review the partial Amazon financial statements and reflect on your ability to read and understand the amounts in the statements today compared with your knowledge before the quarter started the course. Locate Inventories in the Notes to the financial statements and report on the inventory cost flow method used. Does the company use LCM? Do they tell you anything that you have seen before? Find the notes on Accounts Receivable and report on the balance for the allowance for doubtful accounts for December 31, 2020. In addition, look at the company's notes on property, plant, and equipment and read the first sentence. Based on the sentence net, means that property and equipment are stated at what type of value? Find Note 3 - Property and Equipment and report the total amount of accumulated depreciation and amortization. Describe your comfort level with contributing to a group of students analyzing financial information for a university project where the focus is on the income statement and balance sheet.

AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Year Ended December 31, 2018 2019 2020 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD $ 21,856 $ 32,173 $ 36,410 OPERATING ACTIVITIES: Net income 10,073 11,588 21,331 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 15,341 21,789 25,251 Stock-based compensation 5,418 6,864 9,208 Other operating expense (income), net 274 164 (71) Other expense (income), net 219 (249) (2,582) Deferred income taxes 441 796 (554) Changes in operating assets and liabilities: Inventories (1,314) (3,278) (2,849) Accounts receivable, net and other (4,615) (7,681) (8,169) Accounts payable 3,263 8,193 17,480 Accrued expenses and other 472 (1,383) 5,754 Unearned revenue 1,151 1,711 1,265 Net cash provided by (used in) operating activities 30,723 38,514 66,064 INVESTING ACTIVITIES: Purchases of property and equipment (13,427) (16,861) (40,140) Proceeds from property and equipment sales and incentives 2,104 4,172 5,096 Acquisitions, net of cash acquired, and other (2,186) (2,461) (2,325) Sales and maturities of marketable securities 8,240 22,681 50,237 Purchases of marketable securities (7,100) (31,812) (72,479) Net cash provided by (used in) investing activities (12,369) (24,281) (59,611) FINANCING ACTIVITIES: Proceeds from short-term debt, and other 886 1,402 6,796 Repayments of short-term debt, and other (813) (1,518) (6,177) Proceeds from long-term debt 182 871 10,525 Repayments of long-term debt (155) (1,166) (1,553) Principal repayments of finance leases (7,449) (9,628) (10,642) Principal repayments of financing obligations (337) (27) (53) Net cash provided by (used in) financing activities (7,686) (10,066) (1,104) Foreign currency effect on cash, cash equivalents, and restricted cash (351) 70 618 Net increase (decrease) in cash, cash equivalents, and restricted cash 10,317 4,237 5,967 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD $ 32,173 $ 36,410 $ 42,377 See accompanying notes to consolidated financial statements. 38

AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) Year Ended December 31, 2018 2019 2020 Net product sales $ 141,915 $ 160,408 $ 215,915 Net service sales 90,972 120,114 170,149 Total net sales 232,887 280,522 386,064 Operating expenses: Cost of sales 139,156 165,536 233,307 Fulfillment 34,027 40,232 58,517 Technology and content 28,837 35,931 42,740 Marketing 13,814 18,878 22,008 General and administrative 4,336 5,203 6,668 Other operating expense (income), net 296 201 (75) Total operating expenses 220,466 265,981 363,165 Operating income 12,421 14,541 22,899 Interest income 440 832 555 Interest expense (1,417) (1,600) (1,647) Other income (expense), net (183) 203 2,371 Total non-operating income (expense) (1,160) (565) 1,279 Income before income taxes 11,261 13,976 24,178 Provision for income taxes (1,197) (2,374) (2,863) Equity-method investment activity, net of tax 9 (14) 16 Net income $ 10,073 $ 11,588 $ 21,331 Basic earnings per share $ 20.68 $ 23.46 $ 42.64 Diluted earnings per share $ 20.14 $ 23.01 $ 41.83 Weighted-average shares used in the computation of earnings per share: Basic 487 494 500 Diluted 500 504 510 See accompanying notes to consolidated financial statements. 39

AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Year Ended December 31, 2018 2019 2020 Net income $ 10,073 $ 11,588 $ 21,331 Other comprehensive income (loss): Net change in foreign currency translation adjustments: Foreign currency translation adjustments, net of tax of $ 6, $(5), and $(36) (538) 78 561 Reclassification adjustment for foreign currency translation included in Other operating expense (income), net, net of tax of $0, $29, and $0 (108) Net foreign currency translation adjustments (538) (30) 561 Net change in unrealized gains (losses) on available-for-sale debt securities: Unrealized gains (losses), net of tax of $0, $(12), and $(83) (17) 83 273 Reclassification adjustment for losses (gains) included in Other income (expense), net,net of tax of $0, $0, and $8 8 (4) (28) Net unrealized gains (losses) on available-for-sale debt securities (9) 79 245 Total other comprehensive income (loss) (547) 49 806 Comprehensive income $ 9,526 $ 11,637 $ 22,137 See accompanying notes to consolidated financial statements. 40

AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2019 2020 ASSETS Current assets: Cash and cash equivalents $ 36,092 $ 42,122 Marketable securities 18,929 42,274 Inventories 20,497 23,795 Accounts receivable, net and other 20,816 24,542 Total current assets 96,334 132,733 Property and equipment, net 72,705 113,114 Operating leases 25,141 37,553 Goodwill 14,754 15,017 Other assets 16,314 22,778 Total assets $ 225,248 $ 321,195 LIABILITIES AND STOCKHOLDERS EQUITY Current liabilities: Accounts payable $ 47,183 $ 72,539 Accrued expenses and other 32,439 44,138 Unearned revenue 8,190 9,708 Total current liabilities 87,812 126,385 Long-term lease liabilities 39,791 52,573 Long-term debt 23,414 31,816 Other long-term liabilities 12,171 17,017 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 521 and 527 Outstanding shares 498 and 503 5 5 Treasury stock, at cost (1,837) (1,837) Additional paid-in capital 33,658 42,865 Accumulated other comprehensive income (loss) (986) (180) Retained earnings 31,220 52,551 Total stockholders equity 62,060 93,404 Total liabilities and stockholders equity $ 225,248 $ 321,195 See accompanying notes to consolidated financial statements. 41

AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (in millions) Common Stock Shares Amount Treasury Stock Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Total Stockholders Equity Balance as of January 1, 2018 484 $ 5 $ (1,837) $ 21,389 $ (484) $ 8,636 $ 27,709 Cumulative effect of change in accounting principles related to revenue recognition, income taxes, andfinancial instruments (4) 916 912 Net income 10,073 10,073 Other comprehensive income (loss) (547) (547) Exercise of common stock options 7 Stock-based compensation and issuance of employee benefit plan stock 5,402 5,402 Balance as of December 31, 2018 491 5 (1,837) 26,791 (1,035) 19,625 43,549 The cumulative effect of change in accounting principle related to leases 7 7 Net income 11,588 11,588 Other comprehensive income (loss) 49 49 Exercise of common stock options 7 Stock-based compensation and issuance of employee benefit plan stock 6,867 6,867 Balance as of December 31, 2019 498 5 (1,837) 33,658 (986) 31,220 62,060 Net income 21,331 21,331 Other comprehensive income (loss) 806 806 Exercise of common stock options 5 Stock-based compensation and issuance of employee benefit plan stock 9,207 9,207 Balance as of December 31, 2020 503 $ 5 $ (1,837) $ 42,865 $ (180) $ 52,551 $ 93,404 See accompanying notes to consolidated financial statements.