Response to the following problem:
Access EDGAR online (www.sec.gov) and locate the 2009 year 10-K report of Amazon.com (ticker AMZN) filed on January 29, 2010. Review its financial statements reported for years ended 2009, 2008, and 2007 to answer the following questions.
Required
1. What are the amounts of its net income or net loss reported for each of these three years?
2. Does Amazon's operating activities provide cash or use cash for each of these three years?
3. If Amazon has a 2009 net income of more than $900 million and 2009 operating cash flows of more than $3,000 million, how is it possible that its cash balance at December 31, 2009, increases by less than $700 million relative to its balance at December 31, 2008?