Question
Analyze and compare Amazon.com to Netflix Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Netflix, Inc. (NFLX) provides digital streaming
Analyze and compare Amazon.com to Netflix
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):
Line Item Description | Amazon | Netflix |
---|---|---|
Balance sheet, end of year: | ||
Cash | $36,092 | $5,018 |
Short-term investments | 18,929 | |
Income statement: | ||
Operating expenses | 265,981 | 17,552 |
Depreciation expense | 21,789 | 9,320 |
a. Determine the days cash on hand for Amazon and Netflix. Assume a 365-day year. If required, round all computations to one decimal place and use in subsequent calculations. Round final answers to one decimal place.
Line Item Description | Amazon | Netflix |
---|---|---|
Days Cash on Hand | 75.5-incorrect | 104.3 - incorrect |
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