Discuss the effect of the inventory acquired from Zappos

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Question - In 2009 Amazon.com acquired Zappos in a stock acquisition valued at more than $1 billion. Assume that in the acquisition, the value of Zappos inventory was $200 million, and that the acquisition happened on the last day of the fiscal year.

a. Discuss the effect of the inventory acquired from Zappos on Amazon balance sheet.

b. Discuss the effect on the statement of cash flows.

c. How does your answer to part b change if this were a cash acquisition instead?

Reference no: EM133008629

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