Appendix D Specimen Financial Statements: Amazon.com, Inc. 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 2020 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) Year Ended December 31, 2018 2019 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD OPERATING ACTIVITIES: $21,856 $32,173 2020 $36,410 Net income 10,073 11,588 21,331 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 15,341 21,789 25,251 Stock-based compensation 5,418 6,864 9,208 Other operating expense (income), net 274 164 (71) Other expense (income), net 219 (249) (2,582) Deferred income taxes 441 796 (554) Changes in operating assets and liabilities: Inventories (1,314) (3,278) (2,849) Accounts receivable, net and other (4,615) (7,681) (8,169) Accounts payable 3,263 8,193 17,480 Accrued expenses and other 472 (1,383) 5,754 Unearned revenue 1,151 1,711 1,265 Net cash provided by (used in) operating activities 30,723 38,514 66,064 INVESTING ACTIVITIES: Purchases of property and equipment Proceeds from property and equipment sales and incentives Acquisitions, net of cash acquired, and other (13,427) 2,104 (2,186) (16,861) 4,172 (40,140) 5,096 (2,461) (2,325) Sales and maturities of marketable securities 8,240 22,681 50,237 Purchases of marketable securities (7,100) (31,812) (72.479) Net cash provided by (used in) investing activities (12,369) (24,281) (59,611) FINANCING ACTIVITIES: Proceeds from short-term debt, and other 886 1,402 6,796 Repayments of short-term debt, and other (813) (1,518) (6,177) Proceeds from long-term debt 182 871 10,525 Repayments of long-term debt Principal repayments of finance leases Principal repayments of financing obligations Net cash provided by (used in) financing activities (155) (1,166) (1,553) (7,449) (9,628) (10,642) (337) (27) (7,686) (10,066) (53) (1,104) Foreign currency effect on cash, cash equivalents, and restricted cash (351) 70 618