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Please explain why none of these are correct and how you determined this by looking at the operating cash flows! Year Ended December 31, 2015
Please explain why none of these are correct and how you determined this by looking at the operating cash flows!
Year Ended December 31, 2015 2016 2017 OPERATING ACTIVITIES: Net income 596 2,371 3,033 Adjustments to reconcile net income to net cash from operating activities: Depreciation of property and equipment 6,281 8,116 11,478 Stock-based compensation Other operating expense, net 2,119 155 250 81 2,975 160 (20) (246) 4,215 2 02 (292) (29) Other expense (income), net Deferred income taxes Changes in operating assets and liabilities: Inventories Accounts receivable, net and other Accounts payable (2,187) (1,755) 4,294 (1,426) (3,367) 5,030 (3,583) (4,786) 7,175 283 Accrued expenses and other 913 1,292 1,724 1,955 Unearned revenue 738 Net cash provided by (used in) operating activities 12,039 17,272 18,434 18. Refer to the cash flow statement for Amazon shown above. Which of the following statements are true? i. Related to solely to "Unearned Revenue" transactions, Amazon collected less new cash deposits in 2017 than they earned in 2017 ii. Amazon adds "stock-based compensation to income because paying employees with stock decreases cash but not income. iii. Because Amazon had positive net income, we can expect them to have positive operating cash flows. A. only iis true. B. i and ii are true. C. all are true. D. none are true. E. only il is trueStep by Step Solution
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