Financial and Managerial Accounting - With CengageNow
Financial and Managerial Accounting - With CengageNow
14th Edition
ISBN: 9781337577809
Author: WARREN
Publisher: CENGAGE L
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Chapter 7, Problem 1ADM

Continuing Company Analysis—Amazon: Days’ cash on hand

Amazon.com, Inc. is one of the largest Internet retailers in the world. Netflix, Inc. 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 $14,557 $1,114
Temporary investments 495
Income statement:    
Operating expenses 88,810 5,102
Depreciation expense 4,746 2,781
  • 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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