Operating, investing, and financing activities all deal with the cash activities of the Amazon company....

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Finance

Operating, investing, and financing activities all deal with the cash activities of the Amazon company. The cash activities provide insight into how the income, investments, and liabilities of the company will ultimately affect the statement of cash flows.

Utilizing the annual report, refer to the Notes to the Financial Statements and analyze Amazons financial statements for the last 3 years.

Analyze the changes in operating, investing, and financing activities of your company for the last 3 years using indirect methods. Write a 500-750-word overview of the statement of cash flows for the company that addresses the following questions for each type of cash activity.

Operating Activities

  1. Review the current asset balances and explain how accounts receivables and inventory have affected the cash balance for the current fiscal year.
  2. Review the current liability balances and explain how accounts payable, prepaid expenses and accrued liabilities have affected the cash balance for the current fiscal year.
  3. Indicate whether the company generates enough cash to meet its operating cash needs. Provide examples of a few ways in which management could increase operating cash flows (Hint: the operating cycle/ cash cycle).

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