The income statements for Amazon.com, Google, Inc., and Borders, lnc., for a recent year are provided below.

In addition, the statement of cash flows revealed the following line item in the cash flows from operations section of the statement:

1. Determine EBITDA (earnings before interest, taxes, depreciation, and amortization) for each company.
2. Why is the EBITDA for Amazon.com actually less than the net income?
3. Would you conclude that the EBITDA performance of Amazon.com is more like an Internet company such as Google, Inc., or more like a book retailer like Borders, Inc.? Explain.
4. How is EBITDA different than cash flows fromoperations?

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Amazon.com Google, Inc. Borders, Inc Net sales Cost of sales Gross profit Selling, general, and administrative expenses Operating income Interest expense (income) Income before income taxes Income taxes expense (benefit) Net income $6,921 5,319 $1,602 1,162 s 440 84 356 (232) 588 $3,189 1,457 $1,732 1,092 640 (10) 650 251 399 $3,903 2,804 $1,099 883 S 216 207 76 S 131 Google, Inc. $148 Borders, Inc. $113 Amazon.com Depreciation and amortization $76