Question: Use the Amazon.com statement of cash flows, along with the companys other financial statements at the end of this book, to answer the following questions.

Use the Amazon.com statement of cash flows, along with the company’s other financial statements at the end of this book, to answer the following questions.

Requirements

1. Which method does Amazon use to report net cash flows from operating activities? How can you tell?

2. Amazon earned net income during 2009. Did operations provide cash or use cash during 2009? Give the amount. How did operating cash during 2009 compare with 2008?

3. Evaluate 2009 in terms of net income, cash flows, balance sheet position, and overall results. Be specific.

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