Good Question & Answer About Accounting

For the years ended 2013, 2012 and 2011, Amazon reported net profit of $274 million, net loss of $39 million and net profit of $631 million respectively.
Operating activities provide cash in each of the three years. The net cash provided by operating activities in 2013, 2012 and 2011 were $5,475 million, $4,180 million and $3,903 million respectively. As a result, the cash balance from operating activities along would have increased with respect to the position at the end of the previous year for all three years.
Net income for Amazon for the year ended 2013 was $274 million while the cash flow from operating activities for the year was $5,475 million. However, the cash flows from both investing activities and financing activities were negative.
The company purchased property and equipment worth $3,444 million during the year. Further, the company bought marketable securities worth $2,826 million. Although it sold marketable securities of $2,306 million, the net cash used for investing activities for the year 2013 was $4,276 million.
Similarly, in case of financing activities, repayment of long term debt and lease resulted in outflow of $1,011 million. As a result, the net cash used in financing activities was $539 million.
Net change in cash position with respect to December 31, 2012 position was a sum of $5,475 million cash provided by operating activities, $4,276 million cash used in investing activities and $539 million cash used in financing activities. This comes out to $660 million.
Further, due to a negative $86 million effect of foreign currency movement on the existing cash and cash equivalent, the net change in cash position was $574 million.