I’m stuck on a Business question and need an explanation.

For this WSJ Article (available through LIRN https://proxy.lirn.net/CAInstOfAdvMgmt#tabId_alphabetical-view) discussion, you are required to choose a “unique” article related to the core finance concepts from the week. The term “unique” means that you may not post a discussion about an article that another student has already discussed. WSJ articles are first come first served, which should encourage you to reserve your article and post your discussion early.

The objective of the discussion assignment is to apply the core finance concepts from the week. You are free to use outside sources any article/source(article). The key component of your discussion grade will come from your ability to connect the article to one or more of the learning outcomes from this week. The stronger the connection, the better the discussion grade. Students also need to include a brief summary of the article within their write up and remember to properly cite (APA) the article at the bottom of your discussion post.

reply #1

Amazon.com Inc. is planning to create checkout terminals that could be placed in bricks-and-mortar stores, which will allow customers to link their card information to their hands (Andriotis, 2020). When it becomes available, it allows them to pay without having to pull out a card or phone at locations at coffee shops, fast-food restaurants, and other merchants. Amazon intends to better safeguard consumers’ card accounts with the terminals.

We learned Cash last weekend and the importance of it. As the most liquid working capital, cash is vital for almost all companies. Given the credit fraud and account security issues associated with online purchases, it is reasonable for Amazon to explore better approaches to collect more cash in an effective and efficient manner. This not only enables Amazon to provide a higher level of securities with customer payments, but also allows it to expand its business to service payment. Being able to quickly collects its receivables provides Amazon with more available cash to invest, to procure resources, and to expand. It is also importance for Amazon to wisely manage its cash on hand and expanding to financial services provides its customers with financing options and interests income at the same time.


Andriotis, A. M. (2020, January 18). WSJ News Exclusive | Cash, Plastic or Hand? Amazon Envisions Paying With a Wave. Retrieved from https://www.wsj.com/articles/cash-plastic-or-hand-…


We learned statement of cash flow and the importance of cash this week. Statement of cash flow is important due to following reasons: 1) this statement can present where does the company receive its cash inflow, where does the company spend on its cash outflows, and what is the net cash position for the company for that period. 2) Above information is very helpful for investors since it tells investors whether the company has sufficient cash to support its regular operations and what is the foreseeable future for the company. For example, if the company spends a lot of money on purchasing fixed assets, such as equipment and machines, it might mean the company is going to extend its business.

However, the cash analysis is little different for high-tech and start-up companies, such as Tesla. Higgins (2019) stated that Tesla reported loss (lost money) in 2019, but Tesla is in stress growth. If you review Tesla’s financial statements, you will find a lot of cash outflows as researches and development expenses and start-up costs which drives the net loss for Tesla for several years. However, this situation is very normal for a high-tech company and the company (Tesla) will eventually benefit from the researches and developments it performed.


Higgins, T. (2019, July 25). Tesla Loses Money but Stresses Growth. Retrieved from: https://www.wsj.com/articles/tesla-earnings-miss-expectations-11564002511