< Refer to the 10-K for Amazon. Required: 1. What does the company report for the following accounts for the most current fiscal year: Enter your answer in millions. If an amount is zero, enter "0". a. Cash b. Short-term investments (or marketable securities) c. Accounts receivable d. Inventory e. Other current assets f. Accounts payable g. Other current liabilities h. Cash flow from operations 2. The company projects the following to occur in the next fiscal year: Accounts payable will increase by 21%. Other current liabilities are expected to increase by 31%. Cash flow from operations is expected to increase by 26%. Assume all other items remain unchanged from the prior year. Provide the next year's forecasted balances for the following accounts and cash flow from operations. Provide the next year's forecasted balances for the following accounts and cash flow from operations. Round your answer to the nearest million. If an amount is zero, enter "0" a. Cash b. Short-term investments (or marketable securities) c. Accounts receivable, d. Inventory e. Other current assets f. Accounts payable g. Other current liabilities h. Cash flow from operations 3. Compute the forecasted current ratio for the next fiscal year. Round your answer to two decimal places. 4. Compute the forecasted quick ratio for the next fiscal year. Round your answer to two decimal places. 5. Compute the forecasted cash ratio for the next fiscal year. Round your answer to two decimal places. 6. Compute the forecasted operating cash flow ratio for the next fiscal year. Round your answer to two decimal places. FORM 10-K (Mark One) 8 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 000-22513 AMAZON.COM, INC. Delaware (State or other jurisdiction of incorporation or organization) (Exact name of registrant as specified in its charter) 410 Terry Avenue North Seattle, Washington 98109-5210 (206) 266-1000 91-1646860 (1.R.S. Employer Identification No.) (Address and telephone number, including area code, of registrant's principal executive offices) Title of Each Class Common Stock, par value $.01 per share Securities registered pursuant to Section 12(b) of the Act: Trading Symbol(s) AMZN Securities registered pursuant to Section 12(g) of the Act: None Name of Each Exchange on Which Registered Nasdaq Global Select Market Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No O Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No C Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer Non-accelerated filer Accelerated filer Smaller reporting company Experging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No Aggregate market value of voting stock held by non-affiliates of the registrant as of June 30, 2021 Number of shares of common stock outstanding as of January 26, 2022 DOCUMENTS INCORPORATED BY REFERENCE 1,507,362,696,975 508,844,410 Item 2. Properties As of December 31, 2021, we operated the following facilities (in thousands): Description of Use Office space Office space Physical stores (2) Physical stores (2) Fulfillment, data centers, and other Fulfillment, data centers, and other Leased Square Footage (1) Footage 27,519 20,983 22,396 235 - 370,392 Owned Square Location 6,138 North America 1,802 International. 662 North America International 16,663 North America 129,035 9,601 International 570,560 34,866 Total (1) For leased properties, represents the total leased space excluding sub-leased space. (2) This includes 672 North America and 7 International stores as of December 31, 2021. Segment Leased Square Footage (1) North America International AWS Total Owned Square Footage (1) 383,660 9,863 124,246 5,103 14.152 11,960) 522,058 26.926 corporate multinationals. We are also currently subject to tax controversies in various jurisdictions, and these jurisdictions may assess additional income tax liabilities against us. Developments in an audit, investigation, or other tax controversy could have a material effect on our operating results or cash flows in the period or periods for which that development occurs, as well as for prior and subsequent periods. We regularly assess the likelihood of an adverse outcome resulting from these proceedings to determine the adequacy of our tax accruals. Although we believe our tax estimates are reasonable, the final outcome of audits, investigations, and any other tax controversies could be materially different from our historical income tax provisions and accruals. Liquidity and Capital Resources Cash flow information is as follows (in millions): Cash provided by (used in): Year Ended December 31,1 2020 2021 Operating activities Investing activities Financing activities 66,064 S (59,611) (1,104) 46,327 (58,154) 6,291 Our principal sources of liquidity are cash flows generated from operations and our cash, cash equivalents, and marketable securities balances, which, at fair value, were $84.4 billion and $96.0 billion as of December 31, 2020 and 2021. Amounts held in foreign currencies were $23.5 billion and $22.7 billion as of December 31, 2020 and 2021, and were primarily British Pounds, Euros, Japanese Yen, and Canadian Dollars. Cash provided by (used in) operating activities was $66.1 billion and $46.3 billion in 2020 and 2021. Our operating cash Bilfe had from our amar callar davalanar antarrica and content creator customers and Net Sales Net sales include product and service sales. Product sales represent revenue from the sale of products and related shipping fees and digital media content where we record revenue gross. Service sales primarily represent third-party seller fees, which includes commissions and any related fulfillment and shipping fees, AWS sales, advertising services, Amazon Prime membership fees, and certain digital content subscriptions. Net sales information is as follows (in millions): Net Sales:: North America International AWS Consolidated Year-over-year Percentage Growth: North America International AWS Consolidated Year-over-year Percentage Growth, excluding the effect of foreign exchange rates: North America International AWS I Year Ended December 31, 2020 2021 $ 236,282 $ 279,833 104,412 127,787 45,370 62,202 $ 386,064 $ 469,822 38% 40 30 38 2252 18% 37 38 % 18% 38 20 30 37 TIRCITIILIONIT AWS Consolidated. Net sales mix: North America International AWS Consolidated 30 37 37 21 61% 60% 27 27 12 13 100% 100 % Sales increased 22% in 2021, compared to the prior year. Changes in foreign currency exchange rates impacted net sales by $1.4 billion and $3.8 billion for 2020 and 2021. For a discussion of the effect of foreign exchange rates on sales growth, see "Effect of Foreign Exchange Rates" below. North America sales increased 18% in 2021, compared to the prior year. The sales growth primarily reflects increased unit sales, including sales by third-party sellers, and advertising sales. Increased unit sales were driven largely by our continued efforts to reduce prices for our customers, including from our shipping offers, and increased demand, partially offset by fulfillment network inefficiencies and supply chain constraints. We expect our North America sales growth rate to decelerate in Q1 2022 compared to the increase we experienced in Q1 2021. International sales increased 22% in 2021, compared to the prior year. The sales growth primarily reflects increased unit sales, including sales by third-party sellers, and advertising sales. Increased unit sales were driven largely by our continued efforts to reduce prices for our customers, including from our shipping offers, and increased demand, partially offset by fulfillment network inefficiencies and supply chain constraints. We expect our International sales growth rate to decelerate in Q1 2022 compared to the increase we experienced in Q1 2021. Changes in foreign currency exchange rates impacted International net sales by $1.7 billion and $3.0 billion in 2020 and 2021. Operating Income (Loss) Operating income (loss) by segment is as follows (in millions): Year Ended December 31, 2020 2021 Operating Income (Loss): North America International AWS Consolidated $ 8,651 $ 7,271 717 (924) 13,531 18,532 22,899 $ 24,879 Operating income was $22.9 billion and $24.9 billion for 2020 and 2021. We believe that operating income (loss) is a more meaningful measure than gross profit and gross margin due to the diversity of our product categories and services. The decrease in North America operating income in absolute dollars in 2021, compared to the prior year, is primarily due to increased shipping and fulfillment costs, due in part to increased investments in our fulfillment network, increased wage rates and incentives, increased carrier rates, and fulfillment network inefficiencies, and growth in certain operating expenses, including marketing, partially offset by increased unit sales, including sales by third-party sellers, and advertising sales. Changes in foreign exchange rates impacted operating income by $8 million and $88 million for 2020 and 2021. The International operating loss in 2021 as compared to the anting Operating Expenses Information about operating expenses is as follows (in millions): Operating expenses: Cost of sales Fulfillment Technology and content Marketing General and administrative Other operating expense (income), net Total operating expenses Year-over-year Percentage Growth: Cost of sales Fulfillment Technology and content Marketing General and administrative Other operating expense (income), net Percent of Net Sales: Year Ended December 31, 2020 2021 $ 233,307 $ 272,344 58,517 75,111 42,740 56,052 22,008 32,551 6,668 8,823) (75) 62 $ 363,165 $ 444,943 41% 17% 45 28 19 31 17 48 28 32 (137) (183) Technology and content 19 31 Marketing 17 48. General and administrative 28 32 I Other operating expense (income), net (137) (183) Percent of Net Sales: Cost of sales 60.4% 58.0% Fulfillment 15.2 16.0 Technology and content 11.1 11.9 Marketing 5.7 6.9 General and administrative 1.7 1.9 Other operating expense (income), net Cost of Sales Cost of sales primarily consists of the purchase price of consumer products, inbound and outbound shipping costs, including costs related to sortation and delivery centers and where we are the transportation service provider, and digital media content costs where we record revenue gross, including video and music. The increase in cost of sales in absolute dollars in 2021, compared to the prior year, is primarily due to increased product and shipping costs resulting from increased sales, costs from expanding our fulfillment network, as well as increased carrier rates, increased wage rates and incentives, and fulfillment network inefficiencies resulting from a constrained labor market and global supply chain constraints. Free Cash Flow Free cash flow is cash flow from operations reduced by "Purchases of property and equipment, net of proceeds from sales and incentives." The following is a reconciliation of free cash flow to the most comparable GAAP cash flow measure, "Net cash provided by (used in) operating activities," for 2020 and 2021 (in millions): Year Ended December 31, 2020 2021 Net cash provided by (used in) operating activities S 66,064 $ 46,327 Purchases of property and equipment, net of proceeds from sales and incentives Free cash flow (35,044) (55,396) S 31,020 $ (9,069) Net cash provided by (used in) investing activities $ (59,611) $ (58,154) Net cash provided by (used in) financing activities $ (1,104) S 6,291 Free Cash Flow Less Principal Repayments of Finance Leases and Financing Obligations Free cash flow less principal repayments of finance leases and financing obligations is free cash flow reduced by "Principal repayments of finance leases" and "Principal repayments of financing obligations." Principal repayments of finance leases and financing obligations approximates the actual payments of cash for our finance leases and financing obligations. The following is a reconciliation of free cash flow less principal repayments of finance leases and financing obligations to the most comparable GAAP cash flow measure, "Net cash provided by (used in) operating activities," for 2020 and 2021 (in millions): Free cash flow less principal repayments of finance leases and financing obligations is free cash flow "Principal repayments of finance leases" and "Principal repayments of financing obligations." Principal repayments of finance leases and financing obligations approximates the actual payments of cash for our finance leases and financing obligations. The following is a reconciliation of free cash flow less principal repayments of finance leases and financing obligations to the most comparable GAAP cash flow measure, "Net cash provided by (used in) operating activities," for 2020 and 2021 (in millions): Net cash provided by (used in) operating activities Purchases of property and equipment, net of proceeds from sales and incentives Free cash flow Principal repayments of finance leases Principal repayments of financing obligations Free cash flow less principal repayments of finance leases and financing obligations Net cash provided by (used in) investing activities Net cash provided by (used in) financing activities S Year Ended December 31, 2020 (35,044) 2021 66,064 S 46,327 (55,396) 31,020 (9,069) (10,642) (11,163) (53) (162) 20,325 S (20,394) $ (59,611) $ (58,154) S (1,104) S 6,291 the most comparable GAAP cash flow measure, "Net cash provided by (used in) operating activities," for 2020 and 2021 (in millions): Year Ended December 31, 2020 2021 Net cash provided by (used in) operating activities S 66,064 $ 46.327 Purchases of property and equipment, net of proceeds from sales and incentives (35,044) (55,396) Free cash flow 31,020 (9,069) Equipment acquired under finance leases (1) (9,104) (4,422) Principal repayments of all other finance leases (2) (427) (687) Principal repayments of financing obligations (53) (162) Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations $ 21,436 (14,340) Net cash provided by (used in) investing activities $ (59,611) S (58,154) Net cash provided by (used in) financing activities $ (1.104) $ 6,291 (1) For the year ended December 31, 2020 and 2021, this amount relates to equipment included in "Property and equipment acquired under finance leases" of $11,588 million and $7,061 million. (2) For the year ended December 31, 2020 and 2021, this amount relates to property included in "Principal repayments of finance leases" of $10,642 million and $11,163 million