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Based on the statement of cash flows above answer the following: Did the company use the direct method or the indirect method of disclosing cash

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Based on the statement of cash flows above answer the following:

  1. Did the company use the direct method or the indirect method of disclosing cash flows?
  2. Comment on the relationship between cash flows from operations and net income for the year of the statement and the previous year.
  3. What were the most significant sources of cash from operating activities during the period covered by the statement? What percentage of total cash inflows do these sources represent? Answer the same question for the previous period.
  4. Was the cash from operations more than or less than dividends during the period covered by the statement and the previous period?
  5. What were the firm's major investing activities during the period covered by the statement and the previous period? Were cash flows from operations more or less than cash flows from investing activities for the company in question?
  6. What were the most significant cash flows from financing activities during the year of the statement and the previous year?
  7. Review the management discussion and analysis sections of the financial statements to determine if any additional information is available concerning the company's investment or financing strategy.
AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD OPERATING ACTIVITIES: Net income (loss) Adjustments to reconcile net income (loss) to net cash from operating activities: Depreciation of property and equipment, including internal-use software and website development, and other amortization, including capitalized content costs Stock-based compensation Other operating expense, net Other expense (income), net Deferred income taxes Excess tax benefits from stock-based compensation Changes in operating assets and liabilities: Inventories Accounts receivable, net and other Accounts payable Accrued expenses and other Additions to unearned revenue Amortization of previously unearned revenue Net cash provided by (used in) operating activities INVESTING ACTIVITIES: Purchases of property and equipment, including internal-use software and website development, net Acquisitions, net of cash acquired, and other Sales and maturities of marketable securities Purchases of marketable securities Net cash provided by (used in) investing activities FINANCING ACTIVITIES: Excess tax benefits from stock-based compensation Proceeds from long-term debt and other Repayments of long-term debt and other Principal repayments of capital lease obligations Principal repavments of finance lease obligations Net cash provided by (used in) financing activities Foreign currency effect on cash and cash equivalents Net increase (decrease) in cash and cash equivalents CASH AND CASH EQUIVALENTS, END OF PERIOD (241) 596 2,371 \begin{tabular}{rcr} 4,746 & 6,281 & 8,116 \\ 1,497 & 2,119 & 2,975 \\ 129 & 155 & 160 \\ 59 & 250 & (20) \\ (316) & 81 & (246) \\ (6) & (119) & (829) \\ & & \\ (1,193) & (2,187) & (1,426) \\ (1,039) & (1,755) & (3,367) \\ 1,759 & 4,294 & 5,030 \\ 706 & 913 & 1,724 \\ 4,433 & 7,401 & 11,931 \\ (3,692) & (6,109) & (9,976) \\ \hline 6,842 & 11,920 & 16,443 \end{tabular} \begin{tabular}{rcc} 4,746 & 6,281 & 8,116 \\ 1,497 & 2,119 & 2,975 \\ 129 & 155 & 160 \\ 59 & 250 & (20) \\ (316) & 81 & (246) \\ (6) & (119) & (829) \\ & & \\ (1,193) & (2,187) & (1,426) \\ (1,039) & (1,755) & (3,367) \\ 1,759 & 4,294 & 5,030 \\ 706 & 913 & 1,724 \\ 4,433 & 7,401 & 11,931 \\ (3,692) & (6,109) & (9,976) \\ \hline 6,842 & 11,920 & 16,443 \\ & & \\ (4,893) & (4,589) & (6,737) \\ (979) & (795) & (116) \\ 3,349 & 3,025 & 4,733 \\ (2,542) & (4,091) & (7,756) \\ \hline(5,065) & (6,450) & (9,876) \end{tabular}

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