Using the financial statement information, calculate the following ratios for the prior two fiscal years. For each ratio you should show the formula used, enter your company's numbers into that formula, compare the ratio (remember to use the last two years of data.) Then, explain what the ratios may indicate for the company in 2-3 sentences for each one (be as specific as possible, and include chapter concepts such as liquidity, etc.) 9 Current Ratio Profit Margin (Return on Sales) AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) Current assets: Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Operating leases Goodwill ASSETS December 31 2010 2021 36.220 12271 59.820 23.728 32.6-40 21512 161580 1827091 Other assets Total assets 15017 15. 374 23235 120.54% LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable 72.539 5 78.664 Accrued expenses and other 51.775 Unearned revenue 11.827 Total current liabilities 126.385 142.266 Long-term lease liabilities 52573 67,651 Long-term debt Other long-term liabilities 31-816 48,744 17.017 23.643 Commitments and contingencies (Note 7) Stockholders' equity Preferred stock, $0.01 par value: Authorized shares 500 Issued and outstanding shares Common stock, 50.01 par value: Authorized shares 5.000 Issued shares 527 and 532 Outstanding shares 503 and 509 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) 5 (1.837) 42,865 58.538 (180) (1.376) 52.551 85.915 93.404 138/245 321.195 S 420.549 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Year Ended December 31, 2019 2020 2021 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD $ 32,173 $ 36,410 $ 42,377 OPERATING ACTIVITIES: Net income 11,588 21,331 33,364 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 21,789 25,251 34,296 Stock-based compensation 6,864 9,208 12,757 Other operating expense (income), net 164 (71) 137 Other expense (income), net Deferred income taxes Changes in operating assets and liabilities: Inventories Accounts receivable, net and other (249) (2,582) (14,306) 796 (554) (310) (3,278) (2,849) (9,487) (7,681) (8,169) (18,163) Accounts payable 8,193 17,480 3,602 Accrued expenses and other (1,383) 5,754 2,123 Unearned revenue 1,711 1,265 2,314 Net cash provided by (used in) operating activities 38,514 66,064 46,327 INVESTING ACTIVITIES: Purchases of property and equipment (16,861) (40,140) (61,053) Proceeds from property and equipment sales and incentives 4,172 5,096 5,657 Acquisitions, net of cash acquired, and other (2,461) (2,325) (1,985) Sales and maturities of marketable securities 22.681 50,237 59,384 Purchases of marketable securities (31,812) (72.479) (60,157) Net cash provided by (used in) investing activities (24,281) (59.611) (58,154) FINANCING ACTIVITIES: Proceeds from short-term debt, and other 1,402 6,796 7,956 Repayments of short-term debt, and other (1,518) (6,177) (7,753) 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 871 10,525 19,003 (1,166) (1,553) (1,590) (9,628) (10,642) (11,163) (27) (53) (162) (10,066) (1,104) 6,291 70 618 (364) 4,237 5,967 (5,900) 36.410 $ 42.377 S 36.477 Net income AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Other comprehensive income (loss): (in millions) Year Ended December 31, 2019 2020 2021 11.588 $ 21,331 $ 33,364 Net change in foreign currency translation adjustments: Foreign currency translation adjustments, net of tax of $(5), $(36), and $17 Reclassification adjustment for foreign currency translation included in "Other operating expense (income), net," net of tax of $29, 50, and $0 Net foreign currency translation adjustments Net change in unrealized gains (losses) on available-for-sale debt securities: Unrealized gains (losses), net of tax of S(12), $(83), and $72 Reclassification adjustment for losses (gains) included in "Other income (expense), net," net of tax of $0, S8, and $13 Net unrealized gains (losses) on available-for-sale debt securities 78 561 (819) (108) (30) 561 (819) 273 (343) (28) (34) 79 245 (377) Total other comprehensive income (loss) 149 806 (1,196) Comprehensive income 11.637 S 22.137 S 32.168 See accompanying notes to consolidated financial statements