Interest-bearing liabilities | Assessment

FINANCE 1
FINANCE

FINANCE 2
Qantas:
The following table shows the various sources of finance of the company:
Qantas
(Amounts in $ in
millions)
Particulars 2017 2012
Interest-bearing
liabilities
4,405.0
0
5,430.0
0
Issued capital
3,259.0
0
4,729.0
0
Treasury shares
-
206.00
-
42.00
Reserves
12.0
0
36.0
0
Retained earnings
472.0
0
1,162.0
0
Total
7,942.0
0
11,315.0
0
(Qantas, 2019).

FINANCE 3
From the above table, it can be ascertained that there was an increase in the amount of the
interest bearing liabilities for the company which could comprise of the borrowings which is
of long term in nature. The company has sold off some of its shares which could be seen from
the reduction in the amount of the issued capital.
The company has used a certain amount of money from its reserves and retained earnings.
The company exists in the environment of rising bond yields but then it is also true that the
company may ne benefiting from the negative working capital position. The company is able
to use the funds from the up-front payments being given by the banks for the frequent flyer
program. Also, the company’s working capital position is the highest amongst the ASX 200
companies.
The company has recorded the full year profit which ranges between $1.55 billion and $ 1.6
million even when there was a sharp increase in the prices of oil. This goes on to highlight
another unique factor of the business model. This is yet another step in the making of the
shares of the company to yield more on its bonds (Business insider, 2019).
Amazon:
The following table shows the various sources of finance of the company:
Amazon
(Amounts in $ in
millions)
Particulars 2017 2012

FINANCE 4
Long term debt
7,694.
00
3,084.
00
Other long term liabilities
12,607.
00
2,277.
00
Common stock
5.
00
5.
00
Treasury stock
-
1,837.00
-
1,837.00
Additional paid in capital
17,186.
00
8,347.
00
Accumulated comprehensive
loss
-
985.00
-
239.00
Retained earnings
4,916.
00
1,916.
00
Total
35,655.
00
13,553.
00
(Amazon, 2019).
From the above table, it is evident that the long term liabilities and long term debt of the
company has increased which means that the company has borrowed money from the
outsiders in order to finance the business operations. The paid in capital of the company has
increased which means that the company had a share issue and more amounts were requested
from the public and hence, more amount was invested into the company. The retained

FINANCE 5
earnings of the company have increased which could be due to the profits being set aside by
the company in these years.
In the year 2017. The company went to sell one of the biggest corporate bond sale. The
company acquired a premium grocer Whole Foods. The new company taken over by amazon
would result in the entering of it into the technology and online retail group. It would have
the advantage of hundreds of brick and mortar whole foods that exists all across the country.
The founder of the company took a huge amount of loan for the purposes of realising this
sale. This is evident from the increase in the amount of the long term liabilities stated above.

FINANCE 6
References
Annualreports.com. (2019). Amazon.com Inc. - AnnualReports.com. [online] Available at:
http://www.annualreports.com/Company/amazoncom-inc [Accessed 27 Sep. 2019].
Business Insider Australia. (2019). These figures reveal a big secret behind the success of
Qantas as it heads for a record profit. [online] Available at:
https://www.businessinsider.com.au/qantas-profit-guidance-other-peoples-money-2018-5
[Accessed 27 Sep. 2019].
Investor.qantas.com. (2019). Qantas Investors | Investor Centre. [online] Available at:
https://investor.qantas.com/investors/?page=annual-reports [Accessed 27 Sep. 2019].