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
Required:
a. Determine the days’ cash on hand for Amazon and Netflix. Round all calculations to one decimal place.
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
Required:
a. Determine the days’ cash on hand for Amazon and Netflix. Round all calculations to one decimal place.
1 answer:
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