Statement of cash flows relations. Selected data from the statement of cash flows for Amazon.com, an on-line retailer, for Year 10, Year 1 1, and Year 12 appear below (amounts in thousands):

Year 10 Year 11 Year 12 Inflows of Cash Increase in Short-term Debt $ 0 Issue of Long-term Debt 681,499 Issue of Common Stock 44,697 Revenues from Operations Increasing Cash 2,753,398 Sale of Marketable Securities (net) 361,269 Other Financing Activities 0 Outflows of Cash Acquisition of Property and Equipment 134,758 Purchase of Marketable Securities (net) 0 Decrease in Long-term Debt 33,049 Acquisition of Investments in Other Companies 62,533 Expenses for Operations Decreasing Cash 2,883,840 Other Financing Activities 37,557 Increase (Decrease) in Cash 689,126 (282,153) 197,972

; o $ 0 10,000 0 116,456 121,689 3,143,165 3,892,988 0 0 0

38,471 50,321 39,163 196,775 82,521 19,575 14,795 6,198 0

3,262,947 3,718,697 15,958 0

a. Prepare a statement of cash flows for Amazon.com for the three years using the format in Exhibit 1.3. Set cash flow from operations equal to revenues providing cash minus expenses using cash. The balance in cash at the beginning of Year 10 was $133,309.

Changes in marketable securities are investing activities.

b. Comment on the relation among cash flows from operating, investing, and financing activities during the three years.