Resources: Analyzing Amazon document.

Write a 700- to 1,050-word paper.

The incredible growth of Amazon.com has put fear into the hearts of traditional retailers. Amazon's stock price has soared to amazing levels. However, it is often pointed out in the financial press that it took the company several years to report its first profit.

Calculate free cash flow for Amazon for the current and prior years.

Evaluate its ability to finance expansion from internally generated cash.

Thus far, Amazon has avoided purchasing large warehouses. Instead, it has used those of others. It is possible, however, that in order to increase customer satisfaction, the company may have to build its own warehouses. If this happens:

Describe how your impression of its ability to finance expansion change.

Project any potential implications of the change in Amazon's cash provided by operations from the prior year to the current year.

Financial Information

$ in Millions	Current Year	Prior Year
Current assets	$31,327	$24, 625
Total assets	54,505	40,159
Current liabilities	28,089	22,980
Total liabilities	43,764	30,413
Cash provided by operations	6,842	5,475
Capital expeditures	4,893	3,444
Dividends paid	--	--
Net income (loss)	(241)	274
Sales	88,988	74,452

References

Kieso, D.E., Weygandt, J.J., Warfield, T.D.(2016). Intermediate Accounting. (16^th ed.). John Wiley & Sons. p. 256

You can write anything by considering no expansion