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Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Netflix, Inc. (NFLX) provides digital streaming and DVD rentals in the United
Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Netflix, Inc. (NFLX) provides digital streaming and DVD rentals in the United States Amazon and Netflix compete in streaming and digital services; however, Amazon also sells many other products online. The cash, temporary investments, operating expenses, and depreciation expense from recent financial statements were reported as follows for both companies (in millions): a. Determine the days' cash on hand for Amazon and Netflix. Round all calculations to one decimal place. b. With regard to the cash on hand which of these statements is correct? 1. Netflix appears to have greater cash liquidity to support its operations. 2. Amazon appears to have greater cash liquidity to support its operations. 3. There is no significant difference in the days' cash on hand between the two companies. 4. Greater cash liquidity means the business is highly profitable
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