Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 5 - Balance Sheet and Statement of Cash Flows - Review and Practice - Using Your Judgment - Financial Statement Analysis Case: Case 4 - Page 256: b

Answer

If cash provided by operations at Amazon increases in the current year (relative to the previous year), more free cashflows will be available for investing in activities such as the construction of warehouses. Conversely, if there are decreases in cash from operations, the free cash flows available for construction activities will shrink.

Work Step by Step

If cash provided by operations at Amazon increases in the current year (relative to the previous year), more free cashflows will be available for investing in activities such as the construction of warehouses. Conversely, if there are decreases in cash from operations, the free cash flows available for construction activities will shrink.
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