Using the data from the financial statements presented, generate the Dupont model and the PEMA model. Interpret the results in your own words.

2017 19,334 3,033 11,478 4,215 202 (292) (29) 250 81 (3,583) (4,786) 7,175 283 738 18,434 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Year Ended December 31, 2015 2016 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 14,557 $ 15,890 S OPERATING ACTIVITIES: Net income 596 2,371 Adjustments to reconcile net income to net cash from operating activities: Depreciation of property and equipment, including internal-use software and website development, and other amortization, including capitalized content costs 6,281 8,116 Stock-based compensation 2,119 2,975 Other operating expense, net 155 160 Other expense (income), net (20) Deferred income taxes (246) Changes in operating assets and liabilities: Inventories (2,187) (1,426) Accounts receivable, net and other (1,755) (3,367) Accounts payable 4,294 5,030 Accrued expenses and other 913 1,724 Unearned revenue 1,292 1,955 Net cash provided by (used in) operating activities 12,039 17,272 INVESTING ACTIVITIES: Purchases of property and equipment, including internal-use software and website development (5,387) (7,804) Proceeds from property and equipment incentives 798 1,067 Acquisitions, net of cash acquired, and other (795) (116) Sales and maturities of marketable securities 3,025 4,733 Purchases of marketable securities (4,091) (7.756) Net cash provided by (used in) investing activities (6,450) (9,876) FINANCING ACTIVITIES: Proceeds from long-term debt and other 353 621 Repayments of long-term debt and other (1,652) (354) Principal repayments of capital lease obligations (2,462) (3,860) Principal repayments of finance lease obligations (121) (147) Net cash provided by (used in) financing activities (3,882) (3,740) Foreign currency effect on cash and cash equivalents (374) (212) Net increase (decrease) in cash and cash equivalents 1,333 3,444 CASH AND CASH EQUIVALENTS, END OF PERIOD 15,890 $ 19,334 S SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on long-term debt 325 S 290 $ Cash paid for interest on capital and finance lease obligations 206 Cash paid for income taxes, net of refunds 273 412 Property and equipment acquired under capital leases 4,717 5,704 Property and equipment acquired under build-to-suit leases 1,209 (11,955) 1,897 (13,972) 9,988 (13,777) (27,819) 16,231 (1,372) (4,799) (200) 9,860 713 1,188 20,522 $ $ 328 153 319 957 9,637 3,541 544 See accompanying notes to consolidated financial statements. 2017 19,334 3,033 11,478 4,215 202 (292) (29) 250 81 (3,583) (4,786) 7,175 283 738 18,434 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Year Ended December 31, 2015 2016 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 14,557 $ 15,890 S OPERATING ACTIVITIES: Net income 596 2,371 Adjustments to reconcile net income to net cash from operating activities: Depreciation of property and equipment, including internal-use software and website development, and other amortization, including capitalized content costs 6,281 8,116 Stock-based compensation 2,119 2,975 Other operating expense, net 155 160 Other expense (income), net (20) Deferred income taxes (246) Changes in operating assets and liabilities: Inventories (2,187) (1,426) Accounts receivable, net and other (1,755) (3,367) Accounts payable 4,294 5,030 Accrued expenses and other 913 1,724 Unearned revenue 1,292 1,955 Net cash provided by (used in) operating activities 12,039 17,272 INVESTING ACTIVITIES: Purchases of property and equipment, including internal-use software and website development (5,387) (7,804) Proceeds from property and equipment incentives 798 1,067 Acquisitions, net of cash acquired, and other (795) (116) Sales and maturities of marketable securities 3,025 4,733 Purchases of marketable securities (4,091) (7.756) Net cash provided by (used in) investing activities (6,450) (9,876) FINANCING ACTIVITIES: Proceeds from long-term debt and other 353 621 Repayments of long-term debt and other (1,652) (354) Principal repayments of capital lease obligations (2,462) (3,860) Principal repayments of finance lease obligations (121) (147) Net cash provided by (used in) financing activities (3,882) (3,740) Foreign currency effect on cash and cash equivalents (374) (212) Net increase (decrease) in cash and cash equivalents 1,333 3,444 CASH AND CASH EQUIVALENTS, END OF PERIOD 15,890 $ 19,334 S SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on long-term debt 325 S 290 $ Cash paid for interest on capital and finance lease obligations 206 Cash paid for income taxes, net of refunds 273 412 Property and equipment acquired under capital leases 4,717 5,704 Property and equipment acquired under build-to-suit leases 1,209 (11,955) 1,897 (13,972) 9,988 (13,777) (27,819) 16,231 (1,372) (4,799) (200) 9,860 713 1,188 20,522 $ $ 328 153 319 957 9,637 3,541 544 See accompanying notes to consolidated financial statements