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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (106561)	7/27/2000 10:15:27 AM
From: Glenn D. Rudolph	Read Replies (2) \| Respond to of 164684

William, I have not had the opportunity to fully disasemble the income and balance sheet of Amazon. However, at first glance, Amazon's accounts payable went from 40 to 45 days. The balance sheet roughly shows cash burn of $100 million. However, I can't think of any other reason for account payable days to increase 5 days unless management wanted to show as much cash on hand as possible. To put cash burn in perspective, Amazon averages about $5 million in revcenue daily and $4.9 million in cost of goods sold using the accounting not including fulfillment costs in COGS. Therefore, five days of payables should have been disbursed if we are comparing to the prior quarter. That would be another $25 million. Conservatively, Amazon burned $125 million in Q2 and management during the conference call in Q1 stated the firm would fund operations via cap-ex. I stated I did not believe them. How do you reconcile this descrepency? Glenn