Reference no: EM131582520

Paragraph One & Two:

Prior to the financial recession in the late 2000s, some companies had built up significant cash balances. By 2010, discussions began about whether "cash hoarding" by firms was an appropriate activity or if it was hurting the economic recovery. Research this issue and answer the following questions:

• What are the advantages of having a large cash balance? Please describe and provide examples.
• What are the disadvantages of having a large cash balance? Please describe and provide examples.
• What companies currently have sizable amounts of cash and liquid investments on their balance sheets?

Paragraph 3 & 4:

• Review the 2007 Amazon.com (Consolidated Statements of Cash Flows [PDF File Size 2.95 Mb]) Select two of the following questions to review/discuss:

1. Which method does Amazon use to report net cash flows from operating activities? How can you tell?

2. Amazon earned net income in 2007. Did operations provide cash or use cash during 2007? Give the amount?

3. How did operating cash in 2007 compare to 2006? Be specific, provide support for your answer.

4. How did financing cash in 2007 compare to 2006? Be specific, provide support for your answer.

5. How did investing cash in 2007 compare to 2006? Be specific, provide support for your answer.

6. Evaluate 2007 in terms of net income, cash flows, Balance Sheet position, and overall results.

Attachment:- Assignement.rar