Amazon | Netflix Balance sheet end of year: Cash $ 19,834 $1,468 Short-term investments 6,647 266 Income statement Operating expenses 131,801 8,451 Depreciation expense 8,116 4,925

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.2.1MBA
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Analyze and compare Amazon.com to Netflix
Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Netflix, Inc. (NFLX) provides digital streaming and DVD rentals in the United States. Amazon and Netflix compete in streaming and digital services; however, Amazon also sells many other products online. The cash, temporary investments, operating expenses, and depreciation expense from recent financial statements were reported as follows for both companies (in millions):

a. Determine the days’ cash on hand for Amazon and Netflix. Round all calculations to one decimal place.
b. Interpret the results.

Amazon | Netflix
Balance sheet end of year:
Cash
$ 19,834 $1,468
Short-term investments 6,647
266
Income statement
Operating expenses
131,801
8,451
Depreciation expense
8,116
4,925
Transcribed Image Text:Amazon | Netflix Balance sheet end of year: Cash $ 19,834 $1,468 Short-term investments 6,647 266 Income statement Operating expenses 131,801 8,451 Depreciation expense 8,116 4,925
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