Report of Independent Registered Public Accounting Firm The Board of Directors and Shareholders Amazon.com, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Amazon.com, Inc. (the Company) as of December 31, 2020 and 2019, and the related consolidated statements of operations, comprehensive income, stockholders' equity, and cash flows for each of the three years in the period ended December 31, 2020 and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 2, 2021 expressed an unqualified opinion thereon. Basis for Opinion These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging. subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below. providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates Uncertain Tax Positions Description of the The Company is subject to income taxes in the U.S. and numerous foreign jurisdictions and, as discussed Matter in Note 9 of the consolidated financial statements, during the ordinary course of business, there are many tax positions for which the ultimate tax determination is uncertain. As a result, significant judgment is required in evaluating the Company's tax positions and determining its provision for income taxes. The Company uses significant judgment in (1) determining whether a tax position's technical merits are more likely than not to be sustained and (2) measuring the amount of tax benefit that qualifies for recognition. As of December 31, 2020, the Company accrued liabilities of $2.8 billion for various tax contingencies. Auditing the measurement of the Company's tax contingencies was challenging because the evaluation of whether a tax position is more likely than not to be sustained and the measurement of the benefit of various tax positions can be complex, involves significant judgment, and is based on interpretations of tax laws and legal rulings. 36 How We Addressed the Matter in Our Audit We tested controls over the Company's process to assess the technical merits of its tax contingencies, including controls over the assessment as to whether a tax position is more likely than not to be sustained. management's process to measure the benefit of its tax positions, and the development of the related disclosures. We involved our international tax, transfer pricing, and research and development tax professionals in assessing the technical merits of certain of the Company's tax positions. Depending on the nature of the specific tax position and, as applicable, developments with the relevant tax authorities relating thereto, our procedures included obtaining and examining the Company's analysis including the Company's correspondence with such tax authorities and evaluating the underlying facts upon which the tax nosition CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) 2018 Year Ended December 31, 2019 2020 $ 21,856 $ 32,173 $ 36,410 10,073 11,588 21,331 15,341 5,418 274 21,789 6,864 164 (249) 796 25,251 9,208 (71) (2,582) (554) 219 441 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: (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 (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) (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 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 (813) 182 (155) (7,449) (337) (7,686) (351) 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 10,317 $ 32,173 $ 42.377 See accompanying notes to consolidated financial statements. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) Year Ended December 31, 2018 2019 2020 $ 141,915 $ 90,972 232.887 160,408 $ 120,114 280,522 215,915 170.149 386,064 139,156 34,027 28,837 13,814 4,336 296 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: 220,466 12,421 440 165,536 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 $ 23.46 $ 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 (1,417) (183) (1,160) 11,261 (1.197) 9 S S 10,073 20.68 20.14 S S S. 21.331 42.64 41.83 S S CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Year Ended December 31, 2018 2019 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 $6, $(5), and S(36) Reclassification adjustment for foreign currency translation included in **Other operating expense (income), net," net of tax of So, $29, and $0 (538) 78 561 (108) (30) 561 83 273 Net foreign currency translation adjustments (538) Net change in unrealized gains (losses) on available-for-sale debt securities: Unrealized gains (losses), net of tax of $0, S(12), and S(83) (17) Reclassification adjustment for losses (gains) included in "Other income (expense), net," net of tax of $0, SO, and $8 8 Net unrealized gains (losses) on available-for-sale debt securities (9) Total other comprehensive income (loss) (547) Comprehensive income $ 9,526 $ See accompanying notes to consolidated financial statements. (4) (28) 245 79 49 11,637 $ 806 22,137 AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2020 2019 ASSETS $ Current assets: Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Operating leases Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other Unearned revenue Total current liabilities Long-term lease liabilities Long-term debt Other long-term liabilities 36,092 $ 18,929 20,497 20,816 96,334 72,705 25,141 14,754 16,314 225,248 S 42,122 42,274 23,795 24,542 132,733 113,114 37,553 15,017 22,778 321,195 S 47,183 S 32.439 8.190 87.812 39.791 23.414 12,171 72.539 44,138 9,708 126,385 52,573 31,816 17.017 23,414 12,171 31,816 17,017 Ong-term lease liabil mong-term debt Other long-term liabilities 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 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive income (loss) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ See accompanying notes to consolidated financial statements. 5 (1.837) 33,658 (986) 31,220 62,060 225,248 $ 5 (1,837) 42.865 (180) 52,551 93,404 321.195 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in millions) Common Stock Accumulated Additional Other Total Treasury Pald-In Comprehensive Retained Stockholders' Shares Amount Stock Capital Income (Loss) Earnings Equity 484 $ 5 $ (1,837) $ 21,389 $ (484) $ 8,636 $ 27,709 916 I III III 10,073 LIIT 912 10,073 (547) (547) 7 Balance as of January 1, 2018 Cumulative effect of change in accounting principles related to revenue recognition, income taxes, and financial instruments Net income Other comprehensive income (loss) Exercise of common stock options Stock-based compensation and issuance of employee benefit plan stock Balance as of December 31, 2018 Cumulative effect of change in accounting principle related to leases Net income Other comprehensive income (loss) Exercise of common stock options Stock-based compensation and issuance of employee benefit plan stock Balance as of December 31, 2019 5,402 26,791 5,402 43,549 491 5 (1,837) (1,035) 19,625 7 7 LIT 11,588 11,588 49 49 7 6,867 33,658 498 (1,837) (986) 31.220 6,867 62.060 21.331 806 Net income In 1 21.331 806 Other comprehensive income (loss) Exercise of common stock options Stock-based compensation and issuance of employee benefit plan stock Balance as of December 31.2020 9.207 9,207 1827 40.965 SOB OR 404 4180 S 52.551 Instructions From the balance sheet, income statement, statement of cash flows, and notes to the financial statements, answer the following (Each question a, b, c, d, and e): a. What are the largest assets included in the company's balance sheet? Why would a company of this type (size and industry) have a large investment in this particular type of asset? b.In a review of the company's statement of cash flows: 1. What are the primary sources and uses of cash from investing activities? 2. Did investing activities cause the company's cash to increase or decrease? 3. What are the primary sources and uses of cash from financing activities? 4. Did financing activities cause the company's cash to increase or decrease? c. In a review of the company's income statement, did the company have a net income or a net loss for the most recent year? What percentage of total revenues was that net income or net loss? d. Select three items in the notes accompanying the financial statements and explain briefly the importance of these items to people making decisions about investing in, or extending credit to this company. e. Assume that you are a lender and this company has asked to borrow an amount of cash equal to 10 percent of its total assets, to be repaid in 90 days. Would you consider this company to be a good credit risk? Explai Report of Independent Registered Public Accounting Firm The Board of Directors and Shareholders Amazon.com, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Amazon.com, Inc. (the Company) as of December 31, 2020 and 2019, and the related consolidated statements of operations, comprehensive income, stockholders' equity, and cash flows for each of the three years in the period ended December 31, 2020 and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 2, 2021 expressed an unqualified opinion thereon. Basis for Opinion These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging. subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below. providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates Uncertain Tax Positions Description of the The Company is subject to income taxes in the U.S. and numerous foreign jurisdictions and, as discussed Matter in Note 9 of the consolidated financial statements, during the ordinary course of business, there are many tax positions for which the ultimate tax determination is uncertain. As a result, significant judgment is required in evaluating the Company's tax positions and determining its provision for income taxes. The Company uses significant judgment in (1) determining whether a tax position's technical merits are more likely than not to be sustained and (2) measuring the amount of tax benefit that qualifies for recognition. As of December 31, 2020, the Company accrued liabilities of $2.8 billion for various tax contingencies. Auditing the measurement of the Company's tax contingencies was challenging because the evaluation of whether a tax position is more likely than not to be sustained and the measurement of the benefit of various tax positions can be complex, involves significant judgment, and is based on interpretations of tax laws and legal rulings. 36 How We Addressed the Matter in Our Audit We tested controls over the Company's process to assess the technical merits of its tax contingencies, including controls over the assessment as to whether a tax position is more likely than not to be sustained. management's process to measure the benefit of its tax positions, and the development of the related disclosures. We involved our international tax, transfer pricing, and research and development tax professionals in assessing the technical merits of certain of the Company's tax positions. Depending on the nature of the specific tax position and, as applicable, developments with the relevant tax authorities relating thereto, our procedures included obtaining and examining the Company's analysis including the Company's correspondence with such tax authorities and evaluating the underlying facts upon which the tax nosition CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) 2018 Year Ended December 31, 2019 2020 $ 21,856 $ 32,173 $ 36,410 10,073 11,588 21,331 15,341 5,418 274 21,789 6,864 164 (249) 796 25,251 9,208 (71) (2,582) (554) 219 441 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: (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 (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) (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 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 (813) 182 (155) (7,449) (337) (7,686) (351) 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 10,317 $ 32,173 $ 42.377 See accompanying notes to consolidated financial statements. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) Year Ended December 31, 2018 2019 2020 $ 141,915 $ 90,972 232.887 160,408 $ 120,114 280,522 215,915 170.149 386,064 139,156 34,027 28,837 13,814 4,336 296 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: 220,466 12,421 440 165,536 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 $ 23.46 $ 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 (1,417) (183) (1,160) 11,261 (1.197) 9 S S 10,073 20.68 20.14 S S S. 21.331 42.64 41.83 S S CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Year Ended December 31, 2018 2019 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 $6, $(5), and S(36) Reclassification adjustment for foreign currency translation included in **Other operating expense (income), net," net of tax of So, $29, and $0 (538) 78 561 (108) (30) 561 83 273 Net foreign currency translation adjustments (538) Net change in unrealized gains (losses) on available-for-sale debt securities: Unrealized gains (losses), net of tax of $0, S(12), and S(83) (17) Reclassification adjustment for losses (gains) included in "Other income (expense), net," net of tax of $0, SO, and $8 8 Net unrealized gains (losses) on available-for-sale debt securities (9) Total other comprehensive income (loss) (547) Comprehensive income $ 9,526 $ See accompanying notes to consolidated financial statements. (4) (28) 245 79 49 11,637 $ 806 22,137 AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2020 2019 ASSETS $ Current assets: Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Operating leases Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other Unearned revenue Total current liabilities Long-term lease liabilities Long-term debt Other long-term liabilities 36,092 $ 18,929 20,497 20,816 96,334 72,705 25,141 14,754 16,314 225,248 S 42,122 42,274 23,795 24,542 132,733 113,114 37,553 15,017 22,778 321,195 S 47,183 S 32.439 8.190 87.812 39.791 23.414 12,171 72.539 44,138 9,708 126,385 52,573 31,816 17.017 23,414 12,171 31,816 17,017 Ong-term lease liabil mong-term debt Other long-term liabilities 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 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive income (loss) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ See accompanying notes to consolidated financial statements. 5 (1.837) 33,658 (986) 31,220 62,060 225,248 $ 5 (1,837) 42.865 (180) 52,551 93,404 321.195 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (in millions) Common Stock Accumulated Additional Other Total Treasury Pald-In Comprehensive Retained Stockholders' Shares Amount Stock Capital Income (Loss) Earnings Equity 484 $ 5 $ (1,837) $ 21,389 $ (484) $ 8,636 $ 27,709 916 I III III 10,073 LIIT 912 10,073 (547) (547) 7 Balance as of January 1, 2018 Cumulative effect of change in accounting principles related to revenue recognition, income taxes, and financial instruments Net income Other comprehensive income (loss) Exercise of common stock options Stock-based compensation and issuance of employee benefit plan stock Balance as of December 31, 2018 Cumulative effect of change in accounting principle related to leases Net income Other comprehensive income (loss) Exercise of common stock options Stock-based compensation and issuance of employee benefit plan stock Balance as of December 31, 2019 5,402 26,791 5,402 43,549 491 5 (1,837) (1,035) 19,625 7 7 LIT 11,588 11,588 49 49 7 6,867 33,658 498 (1,837) (986) 31.220 6,867 62.060 21.331 806 Net income In 1 21.331 806 Other comprehensive income (loss) Exercise of common stock options Stock-based compensation and issuance of employee benefit plan stock Balance as of December 31.2020 9.207 9,207 1827 40.965 SOB OR 404 4180 S 52.551 Instructions From the balance sheet, income statement, statement of cash flows, and notes to the financial statements, answer the following (Each question a, b, c, d, and e): a. What are the largest assets included in the company's balance sheet? Why would a company of this type (size and industry) have a large investment in this particular type of asset? b.In a review of the company's statement of cash flows: 1. What are the primary sources and uses of cash from investing activities? 2. Did investing activities cause the company's cash to increase or decrease? 3. What are the primary sources and uses of cash from financing activities? 4. Did financing activities cause the company's cash to increase or decrease? c. In a review of the company's income statement, did the company have a net income or a net loss for the most recent year? What percentage of total revenues was that net income or net loss? d. Select three items in the notes accompanying the financial statements and explain briefly the importance of these items to people making decisions about investing in, or extending credit to this company. e. Assume that you are a lender and this company has asked to borrow an amount of cash equal to 10 percent of its total assets, to be repaid in 90 days. Would you consider this company to be a good credit risk? Explai