Netflix began when Reed Hastings had to pay a late fee of $40 for an overdue rented video. He knew he could come up with a more profitable business that would be more enjoyable for the consumer (Funding Universe, n.d.). Before Jeff Bezos founded Amazon, he was a vice president at D. E. Shaw, a global investment management firm in New York City. But he left it all in 1995 to move to Seattle, rent an apartment for $890 a month, and build his electronic commerce company when the Internet was just starting to take hold (Brandt, 2011). Looking at such humble beginnings, it is hard to believe that Hastings and Bezos grew such influential and recognized businesses. You can even go to the websites of their respective companies and find their financial statements to get a better appreciation for the truly impressive growth of each company.

To prepare for Part 3 of your Course Project, locate the financial statements of both Netflix, Inc., and Amazon.com, Inc., in the Netflix and Amazon Data Spreadsheet document, located in this weeks Learning Resources. Isolate their current statements of cash flows. Analyze these statements and consider how they reflect the current financial health and sustainability of these companies.