Interpreting the Relation between Net Income and Cash Flow from Operations. Three years of combined data for two firms follow (in millions).   firm a firm b Net Income $2381 $2825 Cash Flow from operations 1133 7728 One of these firms is Amazon.com, a rapidly growing Internet retailer, and the other is Kroger, a retail grocery store chain growing at approximately the same rate as the population. Identify each firm and explain your reasoning.

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter4: The Accounting Cycle
Section: Chapter Questions
Problem 2MAD: Analyze and compare Zynga, Electronic Arts, and Take-Two Data (in millions) from recent financial...
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Interpreting the Relation between Net Income and Cash Flow from Operations. Three years of combined data for two firms follow (in millions).

  firm a firm b
Net Income $2381 $2825
Cash Flow from operations 1133 7728

One of these firms is Amazon.com, a rapidly growing Internet retailer, and the other is Kroger, a retail grocery store chain growing at approximately the same rate as the population. Identify each firm and explain your reasoning.

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