Question

The following information ($ in millions) comes from a recent annual report of Amazon, Inc.: Net sales $10,760 Total assets 4,476 End of year balance in cash 1,208 Total stockholders' equity 355 Gross profit (Sales - Cost of Sales). 2,560 Net increase in cash for the year 28 Operating expenses 2,060 Net operating cash flow 629 Other income (expense), net (12) Compute Amazon's balance in cash at the beginning of the year.

Answer 1

$1,180 million

Step-by-step explanation:

The computation of the beginning cash balance is shown below:

= End of year balance in cash - Net increase in cash for the year

= $1,208 millions - $28 millions

= $1,180 million

Simply we deduct the net increase in cash from the ending year cash balance so that he accurate amount could come

This ending cash balance should be displayed on the asset side of the balance sheet