The following chart shows the retained earnings (deficits) balance for Amazon.com, Inc., from its initial public offering date until December 31, 2004:

As can be seen, Amazon.com has accumulated deficits during its complete life as a public company.
Below is the Liabilities and Stockholders€™ Equity section of Amazon.com€™s December 31, 2004, balance sheet.
Current liabilities .............$ 1,252,701
Long-term liabilities ..............1,945,439
Paid-in capital ...............1,903,403
Accumulated deficit ............(2,974,428)
Total stockholders€™ equity ..........$(1,071,025)
Total liabilities and stockholders€™ equity ......$ 2,127,115
a. Would you expect Amazon.com to be paying a dividend?
b. Go to Yahoo Finance at finance.yahoo.com and determine the current market value of Amazon.com from the Amazon quotes and information page. Type AMZN in the blank indicated by €œGet Quotes.€ Explain the difference between the total stockholders€™ equity shown on the balance sheet and the market valuation.
c. Where does Amazon.com obtain the funds to stay inbusiness?

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Accumulated Deflcits-Amazon.com (In thousands) December 31, 1995 1996 997 998 1999 2000 200 2002 2003 2004 $500,000 $0 $500,000 1,000,000 $1,500,000 -$2,000,000 $2,500,000 $3,000,000 $3,500,000