(a) Compute net operating profit after tax (NOPAT) for 2018. Assume that the combined federal and state statutory tax rate is 22%. NOPAT $ 0 (b) Compute net operating assets (NOA) for 2018 and 2017. Year NOA 2018 $ 2017 $ 0 0 (c) Compute RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2018. Do not use NOPM x NOAT to calculate RNOA. Do not round until your final answer. Numerator Denominator RNOA $ 0 $ 0 % Numerator Denominator NOPM $ 0 $ 0 % $ Numerator Denominator 0 $ NOAT 0 The 2018 balance sheets and income statement for Netflix Inc. follow. Refer to these financial statements to answer the requirements. NETFLIX INC. Consolidated Statements of Earnings For Year Ended December 31, $ thousands Revenues Cost of revenues Marketing Technology and development General and administrative 2018 $15,953,439 9,967,538 2,528,567 1,221,814 789,392 1,446,128 Operating income Other income (expense) Interest expense (420,493) Interest and other income 200,823 Income before income taxes 1,226,458 Provision for income taxes 15,216 Net income $1,211,242 NETFLIX INC. Consolidated Balance Sheets in thousands, except par value 2018 2017 Current assets Cash and cash equivalents $3,953,581 $2,822,795 Current content assets, net 5,151,186 4,470,032 Other current assets 907,564 536,245 Total current assets 10,012,331 7,829,072 Noncurrent content assets, net 14,960,954 10,530,153 Property and equipment, net 577,379 319,404 901,030 811,407 Other noncurrent assets Total assets Current liabilities Current content liabilities Accounts payable Accrued expenses Deferred revenue Total current liabilities Noncurrent content liabilities Long-term debt Other noncurrent liabilities Total liabilities Stockholders' equity $26,451,694 $19,490,036 $4,686,019 $4,332,139 722,083 359,555 477,417 474,192 919,997 618,622 6,805,516 5,784,508 3,918,124 3,329,796 10,360,058 6,499,432 129,231 21,212,929 135,246 15,748,982 Preferred stock, $0.001 par value 0 Common stock, $0.001 par value 2,315,988 2,030,494 Accumulated other comprehensive loss Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Combined federal and state statutory tax rate (19,582) (20,557) 2,942,359 1,731,117 5,238,765 3,741,054 $26,451,694 $19,490,036 22%

(a) Compute net operating profit after tax (NOPAT) for 2018. Assume that the combined federal and state statutory tax rate is 22%. NOPAT $ 0 (b) Compute net operating assets (NOA) for 2018 and 2017. Year NOA 2018 $ 2017 $ 0 0 (c) Compute RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT) for 2018. Do not use NOPM x NOAT to calculate RNOA. Do not round until your final answer. Numerator Denominator RNOA $ 0 $ 0 % Numerator Denominator NOPM $ 0 $ 0 % $ Numerator Denominator 0 $ NOAT 0 The 2018 balance sheets and income statement for Netflix Inc. follow. Refer to these financial statements to answer the requirements. NETFLIX INC. Consolidated Statements of Earnings For Year Ended December 31, $ thousands Revenues Cost of revenues Marketing Technology and development General and administrative 2018 $15,953,439 9,967,538 2,528,567 1,221,814 789,392 1,446,128 Operating income Other income (expense) Interest expense (420,493) Interest and other income 200,823 Income before income taxes 1,226,458 Provision for income taxes 15,216 Net income $1,211,242 NETFLIX INC. Consolidated Balance Sheets in thousands, except par value 2018 2017 Current assets Cash and cash equivalents $3,953,581 $2,822,795 Current content assets, net 5,151,186 4,470,032 Other current assets 907,564 536,245 Total current assets 10,012,331 7,829,072 Noncurrent content assets, net 14,960,954 10,530,153 Property and equipment, net 577,379 319,404 901,030 811,407 Other noncurrent assets Total assets Current liabilities Current content liabilities Accounts payable Accrued expenses Deferred revenue Total current liabilities Noncurrent content liabilities Long-term debt Other noncurrent liabilities Total liabilities Stockholders' equity $26,451,694 $19,490,036 $4,686,019 $4,332,139 722,083 359,555 477,417 474,192 919,997 618,622 6,805,516 5,784,508 3,918,124 3,329,796 10,360,058 6,499,432 129,231 21,212,929 135,246 15,748,982 Preferred stock, $0.001 par value 0 Common stock, $0.001 par value 2,315,988 2,030,494 Accumulated other comprehensive loss Retained earnings Total shareholders' equity Total liabilities and shareholders' equity Combined federal and state statutory tax rate (19,582) (20,557) 2,942,359 1,731,117 5,238,765 3,741,054 $26,451,694 $19,490,036 22%

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 55CE

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