Analyzing Amazon

Anonymous
timer Asked: Jun 4th, 2018
account_balance_wallet $10

Question description

Resources: Analyzing Amazon document.

Write a 700-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.

Analyzing Amazon Version 12 Material Analyzing Amazon 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. (16th ed.). John Wiley & Sons. p. 256 1

Tutor Answer

TeacherMellwanner
School: Duke University

Check the assignment

Running head: ANALYZING AMAZON

1

Analyzing Amazon

Name

Institution

ANALYZING AMAZON

2
Analyzing Amazon

Free cash is defined as business financial performance measurement based on
the company's cash that is capable of producing. All the same, this after using the
money that was meant for retaining operations or increasing its assets. Amazon is one
of the companies that have displayed this concept through the growth of earnings. This
may occur as a result of capital investments that are crucial to the growth that may
surpass the present cash value that flows from the investments. The company has seen
significant growth thus overtaking traditional retailers. In fact, the stock price in the
company has risen to amazing levels. All the same, the company did just start making
profits, as it took several years before announcing its first profits (Kieso, Weygandt,
Warfield, 2016). The first four years of its operations in the income sta...

flag Report DMCA
Review

Anonymous
Totally impressed with results!! :-)

Similar Questions
Hot Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors