Actual Financial Statements 2012 2013 2014 2015 2016 2017 51,733.00 60,903.00 70,080.00 79,268.00 94,665.00 118,573.00 9,360.00 13,549.00 18,908.00 27,738.00 41,322.00 59,293.00 61,093.00 74,452.00 88,988.00 107,006.00 135,987.00 177,866.00 Net product sales Net service sales Total net sales Operating expenses: Cost of sales Gross Profit Fulfillment Marketing Technology and content General and administrative Other operating expense, 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 45,971.00 54,181.00 62,752.00 71,651.00 5,762.00 6,722.00 7,328.00 7,617.00 6,419.00 8,585.00 10,766.00 13,410.00 2,408.00 3,133.00 4,332.00 5,254.00 4,564.00 6,565.00 9,275.00 12,540.00 896.00 1,129.00 1,552.00 1,747.00 159.00 114.00 133.00 171.00 14,446.00 19,526.00 26,058.00 33,122.00 676.00 745.00 178.00 2,233.00 40.00 38.00 39.00 50.00 (92.00) (141.00) (210.00) (459.00) (80.00) (136.00) (118.00) (256.00) (132.00) (239.00) (289.00) (665.00) 544.00 506.00 (111.00) 1,568.00 (428.00) (161.00) (167.00) (950.00) (155.00) (71.00) 37.00 (22.00) 88,265.00 111,934.00 6,400.00 6,639.00 17,619.00 25,249.00 7,233.00 10,069.00 16,085.00 22,620.00 2,432.00 3,674.00 167.00 214.00 43,536.00 61,826.00 4,186.00 4,106.00 100.00 202.00 (484.00) (848.00) 90.00 346.00 (294.00) (300.00) 3,892.00 3,806.00 (1,425.00) (769.00) (96.00) (4.00) Net income (39.00) 274.00 (241.00) 596.00 2,371.00 3,033.00 Balance Sheet Actual Financial Statements 2012 2013 2014 2015 2016 2017 ASSETS Current assets: Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Non-Current assets: Property and equipment, net Goodwill Other assets Total non-current assets Total assets $8,084 $8,658 $14,557 $15,890 $19,334 $20,522 3,364 3,789 2,859 3,918 6,647 10,464 6,031 7,411 8,299 10,243 11,461 16,047 3,817 4,767 5,612 6,423 8,339 13,164 21,296 24,625 31,327 36,474 45,781 60,197 7,060 10,949 16,967 21,838 29,114 48,866 2,552 2,655 3,319 3,759 3,784 13,350 1,647 1,930 2,892 3,373 4,723 8,897 11, 259 15,534 23,178 28,970 37,621 71,113 $32,555 $40,159 $54,505 $65,444 $83,402 $131,310 LIABILITIES AND STOCKHOLDERS? EQUITY Current liabilities: Accounts payable Accrued expenses and other Current Maturities on Long-Term Debt Notes Payable - Current Total current liabilities Non Current liabilities: Long-term debt Other long-term liabilities Commitments and contingencies (Note 7) Total non-current liabilities $13,318 $15,133 $16,459 $20,397 $25,309 $34,616 4,892 6,688 9,807 10,384 13,739 18,170 579 753 1,520 238 1,056 100 792 1,159 1,823 3,118 4,768 5,097 19,581 23,733 29,609 34, 137 44,872 57,983 3,084 1,698 3,191 3,489 8,265 1,881 4,009 14,155 8,235 5,679 4,009 17,923 7,694 5,138 6,413 19,245 24,743 6,728 14,147 45,618 4,782 6,680 Total non-current liabilities Total Liabilities 4,782 6,680 14,155 24,363 30,413 43,764 17,923 19,245 45,618 52,060 64,117 103,601 Stockholders' equity: Authorized shares - 5,000 Issued shares - 500 and 507 Outstanding shares - 477 and 484 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive loss Retained eamings Total stockholders' equity Total liabilities and stockholders? equity 5 5 5 5 5 5 (1,837) (1,837) (1,837) (1,837) (1,837) (1,837) 8,347 9,573 11,135 13,394 17,186 21,389 (239) (185) (511) (723) (985) (484) 1,916 2,190 1,949 2,545 4,916 8,636 8,192 9,746 10,741 13,384 19,285 27,709 $32,555 $40,159 $54,505 $65,444 $83,402 $131,310 Income Statement Actual Financial Statements 2012 2013 51,733.00 60,903.00 9,360.00 13,549.00 61,093.00 74,452.00 2014 70,080.00 18,908.00 88,988.00 2015 79,268.00 27,738.00 107,006,00 2016 94,665.00 41,322.00 135,987.00 2017 118,573.00 59,293.00 177,866.00 Netproduct sales Netservice sales Total net sales Operating expenses: Cost of sales Gross Profit Fulfillment Marketing Technology and content Generaland administrative Other operating expense, 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 45,971.00 5,762.00 6,419.00 2,408.00 4,564.00 896.00 159.00 14,446.00 676.00 40.00 (92.00) (80.00) (132.00) 544.00 (428.00) (155.00) 54,181.00 6,722.00 8,585.00 3,133.00 6,565.00 1,129.00 114.00 19,526.00 745.00 38.00 (141.00) (136.00) (239.00) 506.00 (161.00) (71.00) 62,752.00 7,328.00 10,766.00 4,332.00 9,275.00 1,552.00 133.00 26,058.00 178.00 39.00 (210.00) (118.00) (289.00) (111.00) (167.00) 37.00 71,651.00 7,617.00 13,410.00 5,254.00 12,540.00 1,747.00 171.00 33,122.00 2,233.00 50.00 (459.00 (256.00) (665.00) 1,568.00 (950.00) (22.00) 88,265.00 6,400.00 17,619.00 7,233.00 16,085.00 2,432.00 167.00 43,536.00 4,186.00 100.00 (484.00) 90.00 (294.00) 3,892.00 (1,425.00) (96.00) 111,934.00 6,639.00 25,249.00 10,069.00 22,620.00 3,674.00 214.00 61,826.00 4,106.00 202.00 (848.00 346.00 (300.00 3,806.00 (769.00) (4.00) Net income (39.00) 274.00 (241.00) 596.00 2,371.00 3,033.00 Actual Financial Statements 2012 2013 2014 2015 55 269 $8,084 $8,658 $14,557 $15 890 2016 2017 $19,334 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD (39) 274 (241) 596 2,371 3,033 2,159 3,253 4,746 6,281 8,116 11,478 2,119 155 2975 160 4,215 202 833 154 19) 253 (265) (429) 1,134 114 1 166 (156) (78) 1,497 129 (3) 62 (316) (6) (20) 250 81 (245 (292) (29) OPERATING ACTIVITIES: Net income Adjustments to reconcile net income to net cash from operating activities: Depreciation of property and equipment, in duding intemal-use software and website development, and other amortization, in duding capitalized content costs Stock-based compensation Other operating expense, net Losses (gains) on sales of marketable securities, Otherexpense (income), net Deferred income taxes Excess tax benefits from stock-based compensation changes in ope rating assets and liabilities: Inventories Accounts receivable, net and other Accounts payable Accrued expenses and other Un earned revenue Amortization of previously unea med revenue Net cash provided by (used in) operating activities INVESTING ACTIVITIES: Purchases of property and equipment, including internaluse software and website development Proceeds from property and equipment 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: Excess tax benefits from stock-based compensation Common stock repurchased Proceeds from long-term debt and other Dividends Paid to Common Shareholders other stuff Principal reo avments of finance lease o bizations (999) (851) 2070 1,038 1,796 (1,521) 4,180 (1,410) (846) 1,BBA 736 2,691 12,292) 5,475 (1.193) (1,039) 1,759 706 4,433 13,692) 6,842 (2,187) (1,755) 4,294 913 1,292 (1,426) (3,367) 5030 1,724 1,955 (3,583) (4,786) 7,175 289 738 12,039 17 272 18,434 13,785) (3,4441 (4,893) (5,387) 17,804) (11,955) (745) (312) 798 1795) (979) 1967 1,897 (116) (13,972) 3,025 4,237 13,302) (3,595) 2,306 (2,826) 14,276) 3,349 (2,542) (5065) 4,091) (6 450) 4,733 17,756) (9,876) 9,988 (13,777) 127,819) 78 6 429 1980) - 3,378 (82) 621 394 (231) 6,359 513) 353 1,652) (354) 16,231 (1372) 1201 151 11351 11211 (1471 12001 13,785) 13,444) 14,893) (5,387) 17,804) (11,955) INVESTING ACTIVITIES: Purchases of property and equipment, induding internal-use software and website development Proceeds from property and equipment 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 798 (795) 1,067 (116) (745) (312) 1,897 (13,972) (979) 4,237 13,302] (3,595) 2,306 (2,826) 14,276) 3,349 12,542) (5,065) 3,025 (4,0911 16.450) 4,733 (7,756) (9,876) 9,988 (13,777] (27,819) 78 6 FINANCING ACTIVITIES: Excess tax benefits from stock-based compensation Common stock repurchased Proceeds from long-term debt and other Dividends Paid to Common Shareholders other stuff Principal repayments of finance lea se obigations 429 1960) 3,378 (82) 394 (231) 6,359 (513) 353 (1,652) 621 (354) 16,231 (1,372) (20) (5) (135) (121) (147) (200) Net cash provided by used in) financing Activities 2,259 (599) 4,432 13.282) (3,740) 9,860 Foreign currency effect on cash and cash equivalents (29) (86) (310) (374) (212) 713 Compute the Debt Service Margin for 2017. Present your result to the second decimal point File Compute the Actual Earnings Retention Rate for 2017 State in percent format to the nearest basis point. Do not include the percent