Business
AccountingCorporate Financial AccountingAnalyze 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): Amazon Netflix Balance sheet end of year: Cash $ 19,334 $1,468 Short-term investments 6,647 266 Income statement Operating expenses 131,801 8,451 Depreciation expense 8,116 4,925 a. Determine the days’ cash on hand for Amazon and Netflix. Round all calculations to one decimal place. b. Interpret the results.
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): Amazon Netflix Balance sheet end of year: Cash $ 19,334 $1,468 Short-term investments 6,647 266 Income statement Operating expenses 131,801 8,451 Depreciation expense 8,116 4,925 a. Determine the days’ cash on hand for Amazon and Netflix. Round all calculations to one decimal place. b. Interpret the results.
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Corporate Financial Accounting
15th Edition
Carl Warren + 1 other
Publisher: Cengage Learning
ISBN: 9781337398169
BuyFindarrow_forward
Corporate Financial Accounting
15th Edition
Carl Warren + 1 other
Publisher: Cengage Learning
ISBN: 9781337398169
Solutions
Chapter
Section
Chapter 7, Problem 7.1MAD
Textbook Problem
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):
| Amazon | Netflix | |
| Balance sheet end of year: | ||
| Cash | $ 19,334 | $1,468 |
| Short-term investments | 6,647 | 266 |
| Income statement | ||
| Operating expenses | 131,801 | 8,451 |
| Depreciation expense | 8,116 | 4,925 |
- a. Determine the days’ cash on hand for Amazon and Netflix. Round all calculations to one decimal place.
- b.
Interpret the results.
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Expert Solution
Chapter 7 Solutions
Corporate Financial Accounting
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