The amount of cash available after the deducting the expected capital expenditure is called free cash flow. Free cash flow represents the financial flexibility of a company.
Cash Flow from operating activities:
The cash generated from the operating activities of the business is called cash flow from operating activities.
Cash flow from investing activities:
Cash flow from generated or used in investing activities such as capital investment or short term investment are called cash flow from investing activities.
Cash flow from financing activities:
The cash generated or used in financing activities like issue of shares, debentures or repayment is called cash flow from financing activities.
To determine:
1. What is the financial focus of Amazon.com, Inc. What are free
2. What type of non-cash adjustments was made to net income stated in statement of cash flow from the Amazon.com report in 2015?
3. What was the net cash provided (used) for investing activities? What were the
4. What was the net cash provided (used) for financing activities? What were the cash inflows and outflows related to this section?
Want to see the full answer?
Check out a sample textbook solutionChapter 16 Solutions
Horngren's Accounting: The Managerial Chapters (12th Edition) (loose Leaf Version)
- The industrial enterprise "HUANG S.A." purchased a sorting and packaging machine from a foreign company on 1/4/2017 at a cost of €500,000. The useful life of the machine was estimated by the Management at ten (10) years, while the residual value was estimated at zero. For the transportation of the machine from abroad to the company's factory, the amount of €20,000 was paid on 15/4/2017. As the insurance coverage of the machine during transportation was the responsibility of the selling company, HUANG S.A. proceeded to insure the machine from 16/4/2017 to 15/4/2018, paying the amount of €1,200. The delivery took place on 15/4/2017. As adequate ventilation of the multifunction device is essential for its proper operation, the company fitted an air duct on the multifunction device. The cost of the air duct amounted to €2,000 and was paid on 20/4/2017. On 25/4/2017, an external electrician was paid €5,000 for the electrical connection of the device. The company also paid €5,000 to an…arrow_forwardprovide correct answer of this General accounting questionarrow_forwarddo fast answer of this Financial accounting questionarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education