Interpreting relationship between net income and cash flow, Ask an Expert

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Interpreting relationship between net income and cash flow from operations. Combined data for three years for two firms appear below

(in million)

Description Firm A Firm B

Net income $2,381 $2,825

Cash flow from operations $1,133 $7,728

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 describe your reasoning.

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