1. What did Amazon do with the cash flow that it generated between 2014 and 2016?

Look at the Cash flow statement and provide a quantitative and qualitative breakdown of what it did with its cash flows.

 

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AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD OPERATING ACTIVITIES: Net income (loss) Adjustments to reconcile net income (loss) to net cash from operating activities: Depreciation of property and equipment, including internal-use software and website development, and other amortization, including capitalized content costs Stock-based compensation Other operating expense, net Other expense (income), net Deferred income taxes Excess tax benefits from stock-based compensation Changes in operating assets and liabilities: Inventories Accounts receivable, net and other Accounts payable Accrued expenses and other Additions to unearned revenue Amortization of previously unearned revenue Net cash provided by (used in) operating activities INVESTING ACTIVITIES: Purchases of property and equipment, including internal-use software and website development, net Acquisitions, net of cash acquired, and other Sales and maturities of marketable securities Purchases of marketable securities Net cash provided by (used in) investing activities FINANCING ACTIVITIES: Excess tax benefits from stock-based compensation Proceeds from long-term debt and other Repayments of long-term debt and other Principal repayments of capital lease obligations Principal repayments of finance lease obligations Net cash provided by (used in) financing activities Foreign currency effect on cash and cash equivalents Net increase (decrease) in cash and cash equivalents CASH AND CASH EQUIVALENTS, END OF PERIOD SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on long-term debt Cash paid for interest on capital and finance lease obligations Cash paid for income taxes, net of refunds Property and equipment acquired under capital leases Property and equipment acquired under build-to-suit leases $ $ 2014 Year Ended December 31, 8,658 $ (241) 4.746 1,497 129 59 (316) (6) (1,193) (1,039) 1,759 706 4.433 (3,692) 6,842 (4,893) (979) 3.349 (2,542) (5,065) 6 6,359 (513) (1,285) (135) 4,432 (310) 5,899 14.557 $ 91 $ 86 177 4,008 920 2015 14.557 $ 596 6,281 2,119 155 250 81 (119) (2,187) (1,755) 4,294 913 7,401 (6,109) 11,920 (4,589) (795) 3.025 (4,091) (6,450) 119 353 (1,652) (2,462) (121) (3,763) (374) 1.333 15,890 $ 325 $ 153 273 4,717 544 2016 15,890 2,371 8,116 2,975 160 (20) (246) (829) (1,426) (3.367) 5,030 1,724 11,931 (9,976) 16,443 (6,737) (116) 4,733 (7,756) (9,876) 829 621 (354) (3.860) (147) (2,911) (212) 3,444 19,334 290 206 412 5,704 1,209 AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD OPERATING ACTIVITIES: Net income (loss) Adjustments to reconcile net income (loss) to net cash from operating activities: Depreciation of property and equipment, including internal-use software and website development, and other amortization, including capitalized content costs Stock-based compensation Other operating expense, net Other expense (income), net Deferred income taxes Excess tax benefits from stock-based compensation Changes in operating assets and liabilities: Inventories Accounts receivable, net and other Accounts payable Accrued expenses and other Additions to unearned revenue Amortization of previously unearned revenue Net cash provided by (used in) operating activities INVESTING ACTIVITIES: Purchases of property and equipment, including internal-use software and website development, net Acquisitions, net of cash acquired, and other Sales and maturities of marketable securities Purchases of marketable securities Net cash provided by (used in) investing activities FINANCING ACTIVITIES: Excess tax benefits from stock-based compensation Proceeds from long-term debt and other Repayments of long-term debt and other Principal repayments of capital lease obligations Principal repayments of finance lease obligations Net cash provided by (used in) financing activities Foreign currency effect on cash and cash equivalents Net increase (decrease) in cash and cash equivalents CASH AND CASH EQUIVALENTS, END OF PERIOD SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on long-term debt Cash paid for interest on capital and finance lease obligations Cash paid for income taxes, net of refunds Property and equipment acquired under capital leases Property and equipment acquired under build-to-suit leases $ $ 2014 Year Ended December 31, 8,658 $ (241) 4.746 1,497 129 59 (316) (6) (1,193) (1,039) 1,759 706 4.433 (3,692) 6,842 (4,893) (979) 3.349 (2,542) (5,065) 6 6,359 (513) (1,285) (135) 4,432 (310) 5,899 14.557 $ 91 $ 86 177 4,008 920 2015 14.557 $ 596 6,281 2,119 155 250 81 (119) (2,187) (1,755) 4,294 913 7,401 (6,109) 11,920 (4,589) (795) 3.025 (4,091) (6,450) 119 353 (1,652) (2,462) (121) (3,763) (374) 1.333 15,890 $ 325 $ 153 273 4,717 544 2016 15,890 2,371 8,116 2,975 160 (20) (246) (829) (1,426) (3.367) 5,030 1,724 11,931 (9,976) 16,443 (6,737) (116) 4,733 (7,756) (9,876) 829 621 (354) (3.860) (147) (2,911) (212) 3,444 19,334 290 206 412 5,704 1,209

Answer rating: 100% (QA)

Qualitative break down Business is able to increase the cash flow from operations per year More cash ... View the full answer