RM
Sales Cost of goods sold Gross profits Selling and administrative expense Depreciation expense Operating income (EBIT) Interest expense Earnings before tax (EBT) Taxes Earnings after tax (EAT) Preferred stock dividends Earnings available to common stockholders Shares outstanding Earnings per share	3,400,000 2,050,000 1,350,000 650,000 230,000 470,000 80,000 390,000 140,000 250,000 10,000 240,000 150,000 1.60

Tutorial Statement of Cash Flows

Amazon Corporation

Income Statement for the Year ended December 31, 2020

Amazon Corporation

Statement of Retained Earnings for the Year ended December 31,2020

	RM
Retained earnings, balance, January 1, 2020 Add: Earnings available to common stockholders, 2020 Deduct: Cash dividends declared and paid in 2020 Retained earnings, balance, December 31, 2020	800,000 240,000 1,040,000 (140,000) 900,000

Amazon Corporation

Comparative Balance Sheet for the Year ended December 31,2020

Assets	Year End 2019 RM	Year End 2020 RM
Current assets: Cash Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments (long-term securities) Plant and equipment Less: Accumulated depreciation Net plant and equipment	100,000 500,000 610,000 60,000 1,270,000 90,000 2,000,000 (1,000,000) 1,000,000	120,000 510,000 640,000 30,000 1,300,000 80,000 2,600,000 (1,230,000) 1,370,000
Total Assets	2,360,000	2,750,000
Liabilities and Stockholders Equity
Current liabilities: Accounts payable Notes payable Accrued expense	300,000 500,000 70,000	550,000 500,000 50,000
Total current liabilities Long term liabilities: Bonds payable, 2020 Total liabilities Stockholders equity: Preferred stock, RM100 par value Common stock, RM1 par value Capital paid in excess of par Retained earnings Total stockholders equity	870,000 100,000 970,000 90,000 150,000 350,000 800,000 1,390,000	1,100,000 160,000 1,260,000 90,000 150,000 350,000 900,000 Total assets
Total liabilities and Stockholders equity	2,360,000	2,750,000

Additional Requirements:

a) Comment on the working capital of Amazon Corporation. Justify your answer by the referring the cash flow statement.

b) In your opinion, propose the best solution how to solve liquidity issues of the Amazon Corporation.

c) Amazon Corporation, anticipated cash flow from operating activities of RM9 million in 2021. It will need to spend RM2.5 million on capital investments in order to remain competitive within the industry. Common stock dividends are projected at RM0.6 million and preferred stock dividends at RM0.25 million.

Based on the scenario assess the firms ability to undertake new projects. Justify your answer based on the projected free cash flow for Amazon Corporation.

This is the whole details of the question, so please can you solve this one please .

Direct method and Indirect Method