Question 15 of 15 -/20 Financial statements of Amazon.com, Inc. are presented in Appendix D. Click here to view Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Click here to view Appendix E. Instructions for accessing and using the complete annual reports of Amazon and Wal-Mart, including the notes to the financial statements are also provided in Appendices Dand E, respectively, (a) Based on information contained in these financial statements, determine the following for each company. (Enter decrease in account balance with a negative sin preceding the number, e3.-45,000,000 or parentheses, es: (45,000,000) Amazon Wal-mart ta) Increase (decrease) in interest expense from 2014 to 2015, S (b) Increase (decrease) in net income from 2014 to 2015 S (c) Increase (decrease in cash flow from operations from 2014 to 2015 ONCOMING CONSOLID STATEMENTS OF CLOWN GRAND CATERING DATTI 04 390 2 Du 31 cum 010 1 ADVIES sem www Car had M CAND CASTORALES, DE DO LA DOMON 11 G 1 sil112 GUTS 5 TH Dom S. MAN AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS in millions, except per share data) Yearded December 31, 2015 2014 79.268 $ 70,080$ 27,738 18,908 107,006 88,988 2013 60,903 13,549 74,452 Net product sales Net service sales Total net sales Operating expenses (1) Cost of sales Fulfillment Marketing Technology and content General and administrative Other operating expense (income), net Total operating expenses Income from operations Interest income Interest expense Other income (expense), net Total non-operating income (expense) Income (loss) before income taxes Provision for income taxes Equity method investment activity, net of tax Net income (los) Basic earnings per share Diluted eamings per share Weighted average shares used in computation of earnings per share Basic Diluted 71,651 13,410 5,254 12.540 1,747 171 104,773 2.233 50 (459) (256) (665) 1,568 (950) (22) 5965 1.28 $ 1.255 62,752 10,766 4,332 9,275 1,552 133 88,810 178 39 (210) (118) (289) (111) (167) 37 (241) 5 (0.52) $ (052) $ 54,181 8,585 3,133 6,565 1,129 114 73,707 745 38 (141) (136) (239 506 (161) (1) 274 0.60 0.59 $ 467 477 462 462 457 465 (1) Includes stock-based compensation as follows: Fulfillment Marketing Technology and content General and administrative 294 88 4825 190 1.224 223 375 $ 125 804 193 603 149 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) Year Ended December 31, 2015 2014 596 $ (241) 5 2013 274 (210) (325) 63 Net income (loss) Other comprehensive income (loss) Foreign currency translation adjustments, net of tax of $10,8(3), and $(20) Net change in unrealized gains (losses) on available-for-sale securities Unrealized gains (losses), net of tax of S(5), S1, and $3 Reclassification adjustment for losses (gains) included in "Other income (expense), net" net of tax of So, S(1), and S(1) Net unrealized gains (losses) on available-for-sale securities Total other comprehensive income (loss) Comprehensive income (loss) (7) 2 (10) 1 (2) (212) 384 $ (3) (1) (326) (567) $ (9) 54 328 See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2015 2014 15,890 $ 3,918 10.243 6,423 36,474 21,838 3,759 3,373 65,444 14,557 2.859 8,299 5,612 31,327 16,967 3,319 2,892 54,505 ASSETS Current assets Cash and cash equivalents Marketable securitas Inventones Accounts receivable, net and other Total current assets Property and equipment, net Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable Accrued expenses and other Uneamed reveme Total current liabilities Long-term debt Other long-term liabilities Commitments and contingencies (Note 7) Stockholders equity Preferred stock. 50.01 par value: Authorized shares - 500 Issued and outstanding shares-noue Common stock $0.01 par value Authonzes SA 20,397 S 10,384 3.118 33,899 8.235 9.926 16,459 9,807 1,823 28.089 8.265 7.410 Commen Stock Accolated Additional Other Total TIS Paid Comprehensive Retaimed Stockholders Amount Stock Capital Income (La) Equity 454 S SS (1,837) $ 8,347 S (239) $ 1,916 $ 8,192 274 274 Balance as of January 1, 2013 Net income 54 54 5 4 4 73 1.149 1.149 9.573 459 (1.837) (185) 2,190 (241) 9,746 (241) (326) 2 (326) 6 2 6 6 Other comprehensive income (low) Exercise of common stock options Excess tax benefits from stock-based compensation Stock-based compensation and issuance of employee benefit plan stock Balance as of December 31, 2013 Net loss Other comprehensive income (los) Exercise of common stock options Excess tax benefits from stock-based compensation Stock-based compensation and issuance of employee benefit plan stock Issuance of common stock for acquisition activity Balance as of December 31, 2014 Net income Other comprehensive income (los) Exercise of common stock options Excess tax benefits from stock-based compensation Stock-based compensation and issuance of employee benefit plan stock Issuance of common stock for acquinition activity Balance as of December 31, 2015 1,510 1,510 44 44 11,135 465 5 (1.837) (511) 1.949 596 10,741 596 (212) (212) 4 119 119 2.131 2.131 4715 5 $ (1.837) $ 13,394 $ (723) $ 2,545 S 13,384 Consolidated Statements of Income Fiscal Years Ended January 31 2016 2015 2014 $478,614 3,516 482,130 5482229 3422 485,651 $473,076 3218 476294 360,984 97,041 24,105 365,086 93,418 27,147 358069 91353 26872 2,027 521 (81) 2,467 21,638 2161 300 (113) 2348 2072 263 (11 2216 24,656 24799 (Amountsin millions except pershoe dieta) Revenues Net sales Membership and other income Total revenues Costs and expenses: Cost of sales Operating selling general and administrative expenses Operating income Interest: Debt Capital lease and francing obligations Interest income Interest, nes Income from continuing operations before income taxes Provision for income taxes: Current Deferred Total provision for income taxes Income from continuing operations Income from discontinued operations, net of income taxes Consolidated net income Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart Basic net income per common share Bac income per common share from continuing operations attributable to Walmart Basic income pes.common share from discontinued operations attributable to Walmart Basic net income per common share attributable to Walmart Diluted net income per common share Diluted income per common share from continuing operations attributable to Walmart Diluted income per common share from discontinued operations attributable to Walmart 7,584 (1,026) 6,558 15,080 8.504 (519) 7.985 16,814 285 17.009 786 $ 16.30 8.619 (514) 8.105 16551 144 15,080 (386) $ 14,694 16 695 (673) 5 16,022 $ 4.58 $501 006 487 003 $ 458 SHOP 49 $ 4.57 485 00 00 Consolidated Statements of Comprehensive Income Fiscal Years Ended antary 31, 2016 2015 2014 $15,080 $17,099 $16695 (386) 1736) 1606 (67 14,694 16.363 16,022 15,220) 366 (202) 86 14,558) 379 1470 (69 Amounts in milion Consolidated net income Less consolidated net income attributable to nonredeemable noncontrolling interest Less consolidated net income attributable to redeemable noncontrolling interest Consolidated net income attributable to Walmart Other comprehensive income (loss), net of income taxes Currency translation and other Net inwestment hedges Cash flow hedges Minimum pensionability Other comprehensive income ilous), net of income taxes Less other comprehensive income (los) attributable to norvedeemable noncontrolling interest Less other comprehensive income loss) attributable to redeemable no controlling interest Other comprehensive income (loss) attributable to Walmart Comprehensive income, net of income taxes Les comprehensive income disattributable to nonredeemable no controlling interest Less comprehensive income oss attributable to redeemable no controlling interest Comprehensive income attributablo to Walmart 3.221) 75 207 153 12.780 311 66 14,970) 541 (18 546 (4,429) 10,110 155 (4.12 12.381 (190 2409 13.909 (295) D 513613 $10.265 $12,191 soccomanyngnole Consolidated Balance Sheets Fiscal Years Ended January 31, 2016 2015 $ 8,705 5,624 44,469 $ 9,135 6,778 45,141 2.224 63,278 1.441 60,239 mounts in millions) ASSETS Current assets: Cash and cash equivalents Receivables, net Inventories Prepaid expenses and other Total current assets Property and equipment: Property and equipment Less accumulated depreciation Property and equipment, net Property under capital lease and financing obligations: Property under capital lease and financing obligations Less accumulated amortization Property under capital lease and financing obligations, net Goodwill Other assets and deferred charges Total assets 176,958 (66,787) 110,171 177,395 (63,115) 114,280 11,096 (4,751) 6,345 16,695 6,131 $199,581 5,239 2,864) 2375 18,102 5,455 $203,490 LIABILITIES AND EQUITY Current Mobilities: Short-term borrowings Accounts payable Accrued liabilities Accrued Income $ 2,708 38,487 19,607 521 2.745 1,592 38.410 19,152 102 41791 $ 2,708 38.487 19,607 521 2.745 551 64,619 39-410 19.152 102 4.19 28 65.753 38,214 5,816 7,321 40889 2.606 B BOS Current liabilities Short term borrowing Accounts payable Accrued abilities Accrued income taxe Long term debt due within one year Capital lease and financing obligations due within one year Total current liabilities Long term debet Long-term capitales and firandinig obligations Deferred income taxes and other Commitments and contingencies Equity Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive income fosse Total Walmart shareholders' equity Nonredeemable no controlling interest Total equity Total liabilities and equity 317 1,805 90,021 (11.597) 80,546 3,065 83,611 $199,581 323 2.462 B5277 0.168 81,394 4543 8592 Consolidated Statements of Shareholders' Equity and Redeemable Noncontrolling Interest Nordeemable Noncommling Hederable Nonconting and Farrings $72,978 16,022 Acumulad Total Other Walmart Comprehensive Showholder income Equity 5 587 $ 76,343 16.022 Total Equity $ 81738 16,617 $5395 $519 78 595 2409) 311) (2409) 1 2,720 166 (6,139) (6.254 (6,139) (6.557) 16.139 16557 (1.0193 14 Capital Common stock Excesso Amountsinfos Shane Amount Porake Balances as of February 1, 2013 3,314 $332 53,620 Consolidated net income Other comprehensive income net of income taxes Cash dividends declared (51 88 per share Purchase of Company stock (87) 19) (290) Redemption value odustment of rederible no controlling interest (1.019 Other 6 55 Balances as of January 31, 2014 3233 323 2362 Consolidated reincome Other comprehensive loss net of come taxes Cash dividends declared ($1.92 perche Purchase of company stock (0) Purchase of redeemable non controlling interest Other 8 Balances as of January 31, 2015 3,228 323 2.462 Consolidated not income Other comprehensive Income net of income taxes (41) 26.566 16,363 1,019 (581) 81339 17,099 1019 159 1491 (595) 5.08 736 2,996 76.255 16:363 (4172 1546 1471 16.185) (950) 16.185) 1990) 16.185) 1980 22 SI (7.168) 11 81,394 14,694 (731 4,543 386 (618 85,937 15.080 85,777 14,694 14429) (4429 1541 (4.970) 1 - - (4429) (4429) (541) (4,970) (6,294) (4,148) (6,294) (4,256) (6,294) (4,256) II (6) (102) other comprehensive income, net of income taxes Cash dividends declared ($1.96 per share) Purchase of Company stock (65) Cash dividend declared to noncontrolling interest Other (1) Balances as of January 31, 2016 3,162 See accompanying notes 11 (555) $317 $1,805 (8) $90,021 $(11,597) (563) $80,546 (691) (632) $3,065 (691) 11.195) $83,611 $ Consolidated Statements of Cash Flows Fiscal Years Ended Lanuary 31, 2016 2015 2014 $ 15,080 $ 17,099 (285) 16,814 $ 16,695 (144) 16551 15,080 Amounts in million Cash flows from operating activities: Consolidated net income Income from discontinued operations net of income taxes Income from continuing operations Adjustments to reconcile income from continuing operations to net cash provided by operating activities Depreciation and amortization Deferred income taxes Other operating activities Changes in certain assets and liabilities, net of effects of acquisitions Receivables, net Inventores Accounts payable Accrued liabilities Accrued income toes 9454 (672) 1410 -8173 (503) 785 8.870 0279 938 (19) (703) 2,008 1,303 (472) (569 (1229) 2678 1,249 166 (1.667 531 101 (1,224 counts payable Accrued liabilities Accrued income taxes Net cash provided by operating activities 1,303 (472) 27,389 1.249 166 103 (1.224 23.257 78.564 012375 (13,115) 727 (11,477) 635 246 (79) (10,675) (12,174 570 671 (192) (11,125) (138) (12,526) Cash flows from investing activities: Payments for property and equipment Proceeds from disposal of property and equipment Proceeds from disposal of certain operations Other investing activities Net cash used in investing activities Cash flows from financing activities: Net change in short-term borrowings Proceeds from issuance of long-term debt Payments of long-term 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 1,235 39 (4,432) (6,294) (4,112) (719) (1,326) (513) (16,122) 16,288) 5.174 (3,904) 16,185) (1,015) (600) (1,844) (409) (15,071 911 7.072 (4,968) (6,139) (6683) (426 (296) (260) (10,789) Effect of exchange rates on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of period (1.022) (430) 9,135 $ 8,705 (514) 1,854 2,281 $9,135 (442) (500) 7,781 $ 7,281 8,111 2540 8.169 2.433 Supplemental disclosure of cash flow information: Income taxes paid Interest pald See accompanying notes 8641 2362