Amazon Cash Flow

Period Ending:

Trend

12/31/2014

12/31/2013

12/31/2012

12/31/2011

Net Income

($241,000)

$274,000

($39,000)

$631,000

Cash Flows-Operating Activities

Depreciation

$4,746,000

$3,253,000

$2,159,000

$1,083,000

Net Income Adjustments

$1,363,000

$1,181,000

$537,000

$725,000

Changes in Operating Activities

Accounts Receivable

($1,039,000)

($846,000)

($861,000)

($866,000)

Changes in Inventories

($1,193,000)

($1,410,000)

($999,000)

($1,777,000)

Other Operating Activities

($3,692,000)

($2,292,000)

($1,521,000)

($1,021,000)

Liabilities

$6,898,000

$5,315,000

$4,904,000

$5,128,000

Net Cash Flow-Operating

$6,842,000

$5,475,000

$4,180,000

$3,903,000

Cash Flows-Investing Activities

Capital Expenditures

($4,893,000)

($3,444,000)

($3,785,000)

($1,811,000)

Investments

$807,000

($520,000)

$935,000

$586,000

Other Investing Activities

($979,000)

($312,000)

($745,000)

($705,000)

Net Cash Flows-Investing

($5,065,000)

($4,276,000)

($3,595,000)

($1,930,000)

Cash Flows-Financing Activities

Sale and Purchase of Stock

$0

$0

($960,000)

($277,000)

Net Borrowings

$4,426,000

($617,000)

$2,790,000

($267,000)

Other Financing Activities

$0

$0

$0

$0

Net Cash Flows-Financing

$4,432,000

($539,000)

$2,259,000

($482,000)

Effect of Exchange Rate

($310,000)

($86,000)

($29,000)

$1,000

Net Cash Flow

$5,899,000

$574,000

$2,815,000

$1,492,000

1. Based on the information you have gathered, analyze the changes in the financial reports regarding cash. Be sure to examine the statement of cash flows.

2. What are the reasons for these changes?