The 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. The complete annual reports, 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 (For Amazon use values for December 31, 2016 and for Wal-Mart use values for January 31, 2017), and the accompanying notes and schedules, compute the following values for each company. (Round all percentages to 1 decimal places, es, 15.1% and asset turnover ratio to 2 decimal places, eg, 15.21. Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses es (451) (1) Return on assets. Return on assets Amazon.com % Wal-Mart Stores % (2) Profit margin (use "Total Revenue"). Profit margin (1) Return on assets. Return on assets % Amazon.com Wal-Mart Stores de % (2) Profit margin (use "Total Revenue"), Profit margin Amazon.com % % Wal-Mart Stores (3) Asset turnover Asset turnover Amazon.com times Wal-Mart Stores times Specimen Financial Statements: Amazon.com, Inc. 2.119 Amazon.com, Inc. is the world's largest online retailer. It also produces Consumer electronics -notably the Kindle e-book reader and the Alexa digital assistant in its Echo speakers and is a major provider of cloud computing services. The following are Amazon's financial statements as presented in the company's 2016 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) Yaraded ember 2014 2016 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD RASHS 145575 150 OPERATING ACTIVITIES Net income.com 0341 596 2.371 Adpostment reconcile income to tech from operating activities Depreciation of property, including intervalue ofware and web development, and other monisation, including capitalized content cost 4.746 6781 3.116 Stock-based compensation 1.497 2,175 Other operating expense, et 129 155 160 Other expense income, et 59 (20) Defenced income taxes (316) RI 2461 ce tax bencies from stock-based compensation (6) (119) (829) Changes in operating assets and liabilities Inventories (1.193) (2.187) (1426) Accounts receivable, net and other (1039) X1,755) (3.367) Accounts payable 1.259 4.294 51030 Accrued expenses and other 706 913 1.724 Addition to unearned revenue 4433 7,401 11.931 Amortization of previously uncanned revenue 3,692) 16.109) (9.976) Net cash provided by used in operating activities 6.842 11.920 16,443 INVESTING ACTIVITIES: Purchases of property and equipment, including internal use software and website development, net (4.893) (4.589) 16,737) Acquisitions, net of cash acquired, and other 1979) (795) (116) Sales and maturities of marketable securities 3.349 3.025 4.733 Purchases of marketable securities (2.542) (4,091) (7,756) Net cash provided by used in investing activities (5.065) (6.450) 19.376 FINANCING ACTIVITIES: Excess tax benefits from stock-based compensation 6 119 829 Proceeds from long-lenn debt and other 6,359 353 621 Repayments of long-term debt and other (513) (1.652) (356) Principal repayments of capital case obligations (1.285) (2.462) (386) Principal repayments of finance lease obligations (135) (121) (147 Net cash provided by used in financing activities 4.432 (3.763) (2.911) Foreign currency effect on cash and cash equivalents (310) (374) (212) Net increase (decrease) in cash and cash equivalents 5.899 1.333 3.444 CASH AND CASH EQUIVALENTS. END OF PERIOD 14.3575 15.8905 19.114 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on long-term debt 5 915 3255 290 Cash paid for interest on capital and finance lease obligations 86 153 206 Cash paid for income taxes, het of refunds 177 273 412 Property and equipment acquired under capital cases 4,00% 4.717 5.704 Property and equipment acquired under build-to-suitcases 920 544 1.209 See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) Year Ended December 31, 2014 2015 70,080 $ 79.268 $ 18.908 27,738 88.988 107,006 2016 94.665 41,322 135,987 Net product sales Net service sales Total net sales Operating expenses Cost of sales Fulfillment Marketing Technology and content General and administrative Other operating expense, net Totul operating expenses Operating income 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 (loss) Basic earnings per share Diluted carnings per share Weighted average shares used in computation of earnings per share: Basic Diluted 62,752 10.766 4,332 9,275 1.552 133 88,810 178 39 (210) (118) (289) (111) (167) 37 (241) $ (0.52) (0.52) $ 71.651 13,410 5,254 12.540 1.747 171 104.773 2.233 50 (459) (256) (665) 1.568 (950) (22) 596 $ 1.28 $ 1.25 $ 88,265 17.619 7.233 16,085 2.432 167 131,801 4,186 100 (484) 90 (294) 3,892 (1.425) (96) 2,371 5.01 4.90 $ 474 462 462 467 477 484 See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in millions) 2014 2016 2,371 (279) ) 9 Year Ended December 31, 2015 Net income (loss) (241) 5 596 $ Other comprehensive income (loss): Foreign currency translation adjustments, net of tax of S(3), $10, and S(49) (325) (210) Net change in unrealized gains (losses) on available-for-sale securities: Unrealized gains (losses), net of tax of S1, S(5), and S(12) 2 (7) Reclassification adjustment for losses (gains) included in "Other income (expense), net," net of tax of (i). So, and 50 (3) S Net unrealized gains (losses) on available-for-sale securities (1) (2) Total other comprehensive income (loss) (326) (212) Comprehensive income (loss) (567) $ 384 See accompanying notes to consolidated financial statements. 8 17 (262) 2,109 AMAZON.COM, INC. CONSOLIDATEDRALANCE SHEETS (in millions, except per share data) Dr. 2015 2016 S 15.8905 3,918 10.243 5.654 35.705 21.838 3.759 3,445 64.747 19,334 6,647 11.461 8.339 45,781 29.114 3,784 4.723 83.402 5 ASSETS Current assets: Cash and cash equivalents Marketable securities Inventories 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 Uncarned revenue Total current liabilities Long-term debt Other long-term liabilities Commitments and contingencies (Note 7) Stockholders' equity: Preferred stock, 80.01 par values Authorized shares -- 500 Issued and outstanding shares -- none Common stock, 50.01 par value: Authorized shares - 5,000 Issued shares - 494 and 500 Outstanding shares - 471 and 477 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 20.397 5 10,372 3.118 33,887 8.227 9.249 25,309 13,739 4.768 43.816 7.694 12,607 5 (1.837) 13,394 (723) 2,545 13,384 64, 747 $ 5 (1.837) 17.186 (985) 4,916 19,285 83,402 $ See accompanying notes to consolidated financial statements. AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Check Acumulated Additional Other Total Treasury Paldin Comprehensive Retained Soldes Shares Amount Stock Capital Income arings quity 459 $ 5 $ (1.837) S 9.573 $ (185) $ 2,190 9.746 (241) (241) (326) 6 2 2 111 (326) 6 6 6 - -- 1.510 - 1,510 1 44 44 11,135 465 (1.837) (511) 1,949 596 10,741 596 (212) 4 TILL (212) IT Balance as of January 1, 2014 Net loss Other comprehensive income (loss) Exercise or 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 (loss) 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, 2015 Net income Other comprehensive income (loss) 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, 2016 4 119 119 - 2,131 2.131 1 1 1 1 1 1 1 5 13,394 471 (1.837) (723) 2.545 2,371 13,384 2,371 (262) 1 (262) 1 829 829 2.962 5 S (1,837) $ 17,186 $ 2,962 19,285 477 (985) S 4,916 $ See accompanying notes to consolidated financial statements, Appendix E Specimen Financial Statements: Wal-Mart Stores, Inc. The following are Wal-Mart Stores, Ines financial statements as presented in the company's annual report for the year ended January 31, 2017. The complete annual report, including notes to the financial statement is available at the company's website Wal-Mart Stores, Inc. Consolidated Statement of Income rical Year Ended January 31 Amountered) 2017 2016 2015 Revenues Net als 5481.317 5478,614 5482.229 Membership and other income 4,556 3,516 3422 Total revenues 485,873 482,130 185/651 Costs and expenses Cost of sales 361,256 360,984 365.080 Operating seting, general and administrative expenses 101,853 97.041 93418 Operating income 22,764 24.105 27.147 Interest: Debt 2,044 2.027 2,161 Capital lense and financing obligations 323 521 300 Interest income (100) (81) (113) Interest, net 2,267 2.467 7.348 Income from continuing operations before income taxes 20,497 21638 24,799 Provision for income taxes 6,204 6,558 7,985 Income from continuing operations 14,293 15.080 16,814 Income from discontinued operations, net of income taxes 285 Consolidated net income 14,293 15.080 17.099 Consolidated net income attributable to noncontrolling interest (650) (386) (736) Consolidated net income attributable to Walmart $ 13,643 $ 14,694 $ 16,363 Basic net income per common share: Basic income per common share from continuing operations attributable to Walmart 4.40 5 458 $ 5.01 Basic income per common share from discontinued operations attributable to Walmart 0.06 Basic net income per common share attributable to Walmart $ 4.40 $ 458 5 5.07 Diluted net income per common share: Diluted income per common share from continuing operations attributable to Walmart $ 4.38 457 $ 4.99 Diluted income per common share from discontinued operations attributable to Walmart 0.06 Diluted net income per common share attributable to Walmart $ 4.38 457 $ 5.05 Weighted average common shares outstanding: Basic 3,101 3.207 3.230 Diluted 3,112 3,217 3,243 Dividends declared per common share $ 2.00 $ 1.96 $ 1.92 See accompanying notes $ $ See more Wal-Mart Stores, Inc. Consolidated Statement of Comprehensive Income Fiscal Years Ended January 31 Amount in monu 2017 2016 2015 Consolidated net income $14,293 $15,080 $17099 Less consolidated net income attributable to nonredeemable no controlling interest (650) (386) (736) Consolidated net income attributable to Walmart 13,643 14694 16,363 Other comprehensive income (loss), net of income taxes Currency translation and other (2,882) (5.220) (4,558) Net investment hedges 413 366 379 Cash flow hedges 21 (202) (470) Minimum pension liability (397) 86 (69) Other comprehensive income (loss), net of income taxes (2,845) (4.970) (4.718) less other comprehensive income (loss) attributable to nonredeemable noncontrolling interest 210 541 546 Other comprehensive income (loss) attributable to Walmart 12,635) (4,429) (4172) Comprehensive income, net of income taxes 11,448 10,110 12.381 Less comprehensive income (loss) attributable to nonredeemable noncontrolling interest (440) 155 (190) Comprehensive income attributable to Walmart $11,000 $10.265 $12.191 See accompanying notes Wal-Mart Stores, Inc. Consolidated Balance Sheets of 2017 2016 56,867 5,035 43.046 1.941 57,689 5 703 5.624 41469 1441 60.239 Anaunga mland ASSETS Current assets Cath and cash equivalent Recewables et 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 tense and financing obligations net Goodwill Other assets and deferred charges Total assets 179,492 (71,7821 107,710 176.958 166.787) 110,171 11,637 15,169) 6,468 17,037 9,921 $198,825 11.096 (4.75 6,345 16,695 6,131 $199,581 $ 1,099 41,433 20,654 921 2,256 565 66,928 $ 2,708 38,487 19,607 521 2,745 551 64619 36,015 6,003 9,344 38.214 5,816 7,321 LIABILITIES AND EQUITY Current lobilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Capital lease and financing obligations due within one year Total current liabilities Long-term debt Long-term capital fease and financing obligations Deferred income taxes and other Commitments and contingencies Equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive loss Total Walmart shareholders' equity Nonredeemable noncontrolling interest Total equity Total liabilities and equity 305 2,371 89,354 (14,232) 77,798 2,737 317 1,805 90,021 (1.597) 80,546 3,065 83,611 $199.581 80,535 $198,825 See accompanying notes Wal-Mart Stores, Inc. Consolidated Statements of Shareholders' Equity and Redeemaole Noncontrolling Interest Retained Ewing $76,566 16,363 Accumulated Total Other Walmart Comprehensive Shareholders Low Equity $ 2.996) $76.255 16.363 Nonredeemable Noncontrolling interest $5,084 736 Redeemable Total Noncontrolling interest $81339 5 1491 17.099 - - (4172) (4.172) (546) (4718) 16,185) 1950) 16.185) 1980) (6,185) (980) - ! ! (1.491) 1 = 2.462 (17) 85,777 14,694 7.168) 113 81,394 14,694 (731) 4,543 386 (618) 85,937 15,080 1 1 - (4429) (4429) (541) (4.970) Cooral Common Stod excess of noun Arnout Parale Balances as of February 1, 2014 3.233 $323 $2,362 Consolidated net income Other comprehensive loss net of income taxes Cash dividends declared (5192 per share) Purchase of Company stock (13) (1) (29) Purchase of redeemable noncontrolling interest Other 8 129 Balances as of January 31, 2015 3.228 323 Consolidated net income Other comprehensive loss, net of income taxes Cash dividends declared ($1.96 per share) Purchase of Company stock (65) (6) (102) Cash dividend declared to noncontrolling interest Other (1) (555) Balances as of January 31, 2016 3,162 317 1,805 Consolidated net income Other comprehensive loss, net of income taxes Cash dividends declared ($2.00 per share) Purchase of Company stock (120) (12) (174) Cash dividend declared to noncontrolling interest Other 740 Balances as of January 31, 2017 3,048 $305 $2,371 See accompanying notes (6,294) (4.148) (6,294) (4,256) (6.294) (4,256) (8) (691) (632) 3,065 650 (691) 0,195) 83,611 14,293 (563) 80,546 13,643 90,021 13,643 (11,597) 11 1 - 1 1 (2,635) (2,635) (210) (2,845) (6,216) (8,090) (6,216) (8,276) (6,216) (8,276) II ! 6 - (4) $89,354 S(14,232) 736 $77,798 (519) (249) $2,737 (519) 487 $80,535 LI $ Wal-Mart Stores, Inc. Consolidated Statements of Cash Flow 2017 30 514.293 $15.080 317099 GAS 16,814 14.293 15080 10.080 761 206 9454 1522 1410 9.173 (503) 785 (4021 1,021 3,942 1.137 492 31,530 19 07030 2008 1303 (472) 27389 1569) (1.2293 2,678 1249 166 28.564 (10,619) 456 011477) 635 246 (12.174 570 671 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 Other operating activities Changes in certain assets and abilities, net of effects of acquisition Receivables.net Inventories Accounts payable Accrued abilities Accrued income taxes Ner cash provided by operating activities Cash flows from investing activities: Payments for property and equipment Proceeds from the disposal of property and equipment Proceeds from the disposal of certain operations Purchase of available for sale securities Investment and business acquisitions, net of cash acquired 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 debe 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 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 year Supplemental disclosure of cash flow information: Income taxes paid Interest paid 662 (1,901) 12.463) (122) (13,987) 079 (106751 (192) (11.125) 11,673) 137 12,055) 16,216 (8,298) (479) 190) (255) (18,929) 1.235 39 4432 16.294 (4112 019 1326 (513) (16122 16.288) 5.174 6.904 (6.185) (1015) (600) (1.844 (409) (15,071) (452) 11,838) 8,705 $ 6,867 11.0223 (430 9.135 $ 8.705 (514) 1854 7.281 $9,135 4,507 2.351 8111 2540 8.169 2433 See accompanying notes