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

To: JimieA who wrote (8114)	6/30/1998 10:09:00 AM
From: Glenn D. Rudolph	Respond to of 164687

I used $225M as the net bond proceeds. Net of paying $25M issuance costs, that you mentioned, as well as payment of $75M of outstanding bank debt. Jim, I could be losing my ability to do arithmetic<G> You are correct. I see the proceeds were $325 million less the $25 million issuing costs. Also I do not think any company would pay off all its accounts payable and accrued expenses. This is just a normal part of business. I suspect that AMZN will have accounts payable in the June and subsequent quarters. Amazon has to pay their accounts payable within 30 days at max. The accounts payable are advertising expenses, books purchased and payroll. Due to their business model, this is not long term debt. If they do not pay the book vendor, they are out of business. But I agree that somewhere down the line, maybe five years out or more, AMZN will have to generate sufficient profits to pay off or refinance the debt. That's five years! I still do not see any current cash problem. But we just might agree to disagree. You are correct and I made an error. Cash is not going to be an issue unless the losses are greater than projected. Thank you for clarifying this matter. Glenn