ACC201 Week 4 Discussion 2 Analyzing Amazon.com ’s Balance Sheet

Hello Class,

After reviewing Note 1 and Note 3 of Amazon.com annual report for 2018, I found that Amazon.com has some interesting characteristics showing their amount of cashflow and how they report. Areas of cashflow are indicated as Net change in cash, cash equivalents, and restricted cash. Total estimated fair value of cash for December 2017] are listed as $41,250,000.000. Amazon.com has physical office space listed under item 2. Properties on page 15. This includes 520 north America and 7 international stores as of December 31, 2018. These descriptions are listed as total square footage of 277,242 with only 11,177 square footage being owned by Amazon.com . The other square footage is leased excluding the sub-leased spaces. The report includes in Note 3 that the property and equipment they consider includes some that are fully depreciated to conform to the current year presentation. Note 1 states that property and equipment are listed at cost less accumulated depreciation.  Equipment includes assets such as servers and networking equipment, heavy equipment, and other fulfillment equipment. These are items that will have depreciation and can be calculated over the 3-10 year span. The additional types of property they acquired is buildings and land that they own plus build-to-suit, finance, and capital lease arrangements.