Answered: Amazon | Netflix Balance sheet end of…

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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Question

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

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