Financial and Managerial Accounting - Workingpapers
Financial and Managerial Accounting - Workingpapers
15th Edition
ISBN: 9781337912112
Author: WARREN
Publisher: CENGAGE L
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Chapter 7, Problem 1MAD

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):

Chapter 7, Problem 1MAD, Analyze and compare Amazon.com to Netflix Amazon.com, Inc. (AMZN) is one of the largest Internet

  1. a. Determine the days’ cash on hand for Amazon and Netflix. Round all calculations to one decimal place.
  2. b. Interpret the results.
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