Amazon.com, Inc. (AMZN) is one of the largest Internetretailers in the world. Netflix, Inc. (NFLX) provides digitalstreaming and DVD rentals in the United States. Amazon andNetflix compete in streaming and digital services; however,Amazon also sells many other products online. The cash,temporary investments, operating expenses, and depreciationexpense from recent financial statements were reported as followsfor both companies (in millions):Amazon NetflixBalance sheet, end of year:Cash$19,334 $1,468Short-term investments6,647266Income statement:Operating expenses131,8018,451Depreciation expense8,1164,925a. Determine the days' cash on hand for Amazon and Netflix.Round all calculations to one decimal place.AmazonNetflixDays' Cash on Handdaysdaysb. With regard to the cash on hand which of these statements iscorrect?1. Netflix appears to have greater cash liquidity to support itsoperations.2. Amazon appears to have greater cash liquidity to support itsoperations.3. There is no significant difference in the days' cash on handbetween the two companies.4. Greater cash liquidity means the business is highlyprofitable.

Cash on hand in the broad sense means all the cash as well as coins available on hand and also the…

a. Determine the days' cash on hand for Amazon and Netflix. Round all calculations to one decimal place. Amazon Netflix Days' Cash on Hand days days b. With regard to the cash on hand which of these statements is correct?

a. Determine the days' cash on hand for Amazon and Netflix. Round all calculations to one decimal place. Amazon Netflix Days' Cash on Hand days days b. With regard to the cash on hand which of these statements is correct?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

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.
Amazon
Netflix
Days' Cash on Hand
days
days
b. With regard to the cash on hand which of these statements is
correct?
1. Netflix appears to have greater cash liquidity to support its
operations.
2. Amazon appears to have greater cash liquidity to support its
operations.
3. There is no significant difference in the days' cash on hand
between the two companies.
4. Greater cash liquidity means the business is highly
profitable.

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Accounting for Cash and cash equivalents

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required: please answer this question by choosing the right options.
Make a ledger account with this journal entry.
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