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Amazon.com Inc.'s cash flow statement for the year ended December 31, 2023, includes the following details: Net Income: $20,000,000 Depreciation Expense: $5,000,000 Increase in Accounts
Amazon.com Inc.'s cash flow statement for the year ended December 31, 2023, includes the following details:
- Net Income: $20,000,000
- Depreciation Expense: $5,000,000
- Increase in Accounts Receivable: $2,000,000
- Decrease in Inventory: ($1,000,000)
- Increase in Accounts Payable: $3,000,000
- Interest Expense Paid: ($500,000)
- Income Tax Paid: ($6,000,000)
- Net Cash Provided by Operating Activities: $22,500,000
- Purchase of Property, Plant, and Equipment: ($7,000,000)
- Proceeds from Sale of Investments: $1,000,000
- Net Cash Used in Investing Activities: ($6,000,000)
- Proceeds from Issuance of Long-term Debt: $10,000,000
- Repayment of Short-term Borrowings: ($2,000,000)
- Payment of Cash Dividends: ($5,000,000)
- Net Cash Used in Financing Activities: $3,000,000
a. Calculate the Cash Flow from Operations for Amazon.com Inc. using the indirect method. b. Determine the Net Cash Used in Investing Activities and explain its implications for Amazon’s investment in assets. c. Analyze the Financing Activities section and discuss its impact on Amazon.com Inc.’s financial flexibility and capital structure.
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