Calculate free cash flow for Amazon for the current and prior years, and discuss its ability to finance expansion from internally generated cash. Thus far Amazon has avoided purchasing large warehouses. Instead, it has used those of others. It is possible, however, that in order to increase customer satisfaction the company may have to build its own warehouses. If this happens, how might your impression of its ability to finance expansion change? (b) Discuss any potential implications of the change in Amazon’s cash provided by operations from the prior year to the current year.

Part A.

Free Cash Flow = Operating Cash Flow - Capital Expenditures  

Meeting Expansion from inside produced money is conceivable in the event that it needs to proceed with utilizing the distribution centers of others for the reason yet in the event that in the event that it needs to manufactured its own stockroom in the coming time , the inside created money isn't adequate for the development it wishes and it may need to depend on outer financing hotpots for the extension of distribution centers it wants.  

Part B)

The Cash gave by operations for current year has demonstrated a positive upside move which is even reflected in increment in deals for current year which shows that the monetary soundness of the organization has improved significantly and the organization is producing more money from its center action from the earlier year which is acceptable from the angle of both the Company and Shareholders. With the Increase in deals the Net benefit has expanded which in any case was running in misfortunes the most recent year.

the answer is a.

by: nicholas dooley