1.How do you interpret Netflix's adjustment for accrued expressions and other liabilities (198,183) in its operating cash flows?

2.How do you interpret Netflix's adjustment for deferred revenue (183, 247) in its operating cash flows?

3.How do you interpret Comcast's adjustment for current and noncurrent receivables, net (-20) in its operating cash flows? (2-4 sentences)

4.How do you interpret Comcasts adjustment for Accounts Payable and accrued expenses (-266) in its operating cash flows?

5.2020 was an odd year. Many companies grew their cash balances to increase liquidity during the pandemic. To look at a more normal year, we will analyze the year ending 12/31/2019 for this question. Based on each companys cash flow patterns, what stage of the corporate life cycle is each firm in? Explain. (1-3 sentences each company)

Supporting data below:

sup 1: Comcast comprehensive income

sup 2: Netflix comprehensive income

sup 3: Comcast SE

sup 4: Netflix SE

sup 5: Comcast cash flow

sup 6: Netflix cashflows

sup 7: Comcast income statement

sup 8: Netflix income statement

sup 9: Comcast balance sheet

sup 10: Netflix balance sheet

sup 11: Common sized income statement

supp 12: common-sized balance sheet

12 Months Ended Dec. 31, 2020 Dec. 31, 2015 - Dec. 31, 2011 $ 10,701 $ 13,323 $ 11,862 1,213 1,375 (916) 19 65 Consolidated Statement of Comprehensive Income - USD ($) $ in Millions Net income Currency translation adjustments, net of deferred taxes of $(331), $(66) and $9 Cash flow hedges: Deferred gains (losses), net of deferred taxes of $26, $(4) and $(3) Realized (gains) losses reclassified to net income, net of deferred taxes of $31, $(10) and $(4) Employee benefit obligations and other, net of deferred taxes of $20, $16 and $(3) Comprehensive income Less: Net income attributable to noncontrolling interests and redeemable subsidiary preferred stock Less: Other comprehensive income (loss) attributable to noncontrolling interests Comprehensive income attributable to Comcast Corporation (101) (147) (68) 11,598 167 (57) 14,725 266 50 (6) 8 10,998 131 60 $ 11,371 (13) $ 14,472 (41) $ 10,908 Comcast Cash Flows Netflix SE Comcast SE Netflix Comprehensive Income Comcast Comprehensive Income + 12 Months Ended Dec. 31, 2020- Dec. 31, 2015 Dec. 31, 2011 $ 2,761,395 $ 1,866,916 $ 1,211,242 Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands Statement of Comprehensive Income [Abstract] Net income Other comprehensive income (loss): Foreign currency translation adjustments Comprehensive income 67,919 $ 2,829,314 (3,939) $ 1,862,977 975 $ 1,212,217 Netflix Cash Flows Comcast Cash Flows Netflix SE Comcast SE Netflix Comprehensive Income Comcast Compre ... + Consolidated Statement of Changes in Equity - USD ($) $ in Millions Total Class A Common Class B Common Additional Paid- Stock Stock in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income (Loss) Noncontrolling Interests $ 69,459 $ 55 $0 $ 37,497 $(7,517) $ 843 $ 38,202 $143) $ 379 $76 607 1920) (1) 14,408) 214 13,499) (823) 63 (41) 294 (280) 73 889 0 11,731 41,983 $ 11,731 $ 72,502 54 0 37,461 $ (7,517) (368) 0 783 (34) 222 (485) (3,860) Beginning balance at Dec. 31, 2017 Cumulative Effect, Period of Adoption, Adjustment Increase (Decrease) in Stockholders' Equity [Roll Forward] Stock compensation plans Repurchases of common stock under repurchase program and employee plans Employee stock purchase plans Dividends declared Other comprehensive income (loss) Contributions from (distributions to) noncontrolling interests, net Other Net income (loss) Ending balance at Dec 31, 2018 Increase (Decrease) in Stockholders' Equity (Roll Forward] Stock compensation plans Repurchases of common stock under repurchase program and employee plans Employee stock purchase plans Dividends declared Other comprehensive income (loss) Contributions from distributions to) noncontrolling interests, net Other Net income (loss) Ending balance at Dec 31, 2019 Cumulative Effect, Period of Adoption, Adjustment Increase (Decrease) in Stockholders' Equity (Roll Forward] Stock compensation plans Repurchases of common stock under repurchase program and employee plans Employee stock purchase plans Dividends declared Other comprehensive income (loss) Contributions from (distributions to) noncontrolling interests, net Other Net income (loss) Ending balance at Dec 31, 2020 Increase (Decrease) in Stockholders' Equity (Roll Forward] 1.415 15 (13) 176 (14) 110 1,148 0 13,057 50,695 $ (124) 13,057 $ 83,874 54 0 38,447 (7,517) 1,047 0 920 (143) 255 (407) (4,2501 837 (15) 60 192 (3) ( 18 $ 1,415 (10) 10,534 $ 56,438 10,534 $ 91,738 $ 54 $o $ 39,464 $ (7,517) $ 1,884 ... Comcast Income Statement Netflix Cash Flows Comcast Cash Flows Netflix SE Comcast SE Netflix Comprehensi'... Total Common Stock and Accumulated other Common Stock In Shares - Additional Paid-in Capita. Comprehensive Income (Loss - - 433,392,686 $ 1,871,396 Retained Earning $ 1,731,117 $3,581,956 $(20,557) 1,211,242 975 3,205,911 1,211,242 $ 975 3,205,911 $ 123,935 320,657 $5,238,765 $ 123,935 $ 320,657 $ 2,315,988 436,598,597 (19,582) 2,942,359 $ 2,474 Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands Beginning Balance at Dec 31, 2017 Increase (Decrease) in Stockholders' Equity (Roll Forward] Net income Other comprehensive income (loss) Issuance of common stock upon exercise of options (in shares) Issuance of common stock upon exercise of options Stock-based compensation expense Ending Balance at Dec. 31, 2018 Currulative Effect, Period of Adoption, Adjustment Increase (Decrease) in Stockholders' Equity (Roll Forward] Net income Other comprehensive income (loss) Issuance of common stock upon exercise of options (in shares) Issuance of common stock upon exercise of options Stock-based compensation expense Ending Balance at Dec 31, 2019 Increase (Decrease) in Stockholders' Equity (Roll Forward] Net income Other comprehensive income (loss) Issuance of common stock upon exercise of options (in shares) Issuance of common stock upon exercise of options Stock based compensation expense Ending Balance at Dec. 31, 2020 1,866,916 (3,939) 2,208,052 $ 1,866,916 $ (3,939) 2,208,052 $ 72,565 405,376 7,582,157 $ 72,565 $ 405,376 $ 2,793,929 438,806,649 (23,521) 4,811,749 2,761,395 67,919 4,088,612 2,761,395 $ $ 67,919 4,088,612 $ 238,589 415,180 $ 11,065,240 $ 238,589 $415,180 $ 3,447,698 442,895,261 $ 44,398 $ 7,573,144 Comcast Income Statement Netflix Cash Flows Comcast Cash Flaws Netflix SE Comcast SE Netflix Comprehensi' ... E (233) 2,339 (812) 250 (12,047) (370) 886 (1,899) 86 (14,841) (38,219) 141 (1,257) 650 (50,854) Acquisitions, net of cash acquired Proceeds from sales of businesses and investments Purchases of investments Other Mat. Net cash provided by (used in) investing activities Financing Activities Proceeds from (repayments of short-term borrowings, net Dende tre Proceeds from borrowings Proceeds from collateralized obligation Repurchases and repayments of debt ung Repurchases of common stock under repurchase program and employee plans Dividends paid Other Net cash provided by (used in) financing activities Impact foreign currency on cash, cash equivalents and restricted cash Increase (decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, beginning of year Cash, cash equivalents and restricted cash, end of year 0 18,644 0 (18,777) (534) (4,140) (1,706) (6,513) 2 6,179 5,589 S 11,768 (1,288) 5,479 5,175 (14,354) (504) (3,735) ) 46 . (9,181) 5 1,680 3,909 $ 5,589 379 44,781 0 (8,798) (5,320) (3,352) (550) 114 27,140 (245) 338 3,571 $ 3,909 Netflix Income Statement Comcast Income Statement Netflix Cash Flows Comcast Cash Flows Netflix SE Comc ... 12 Months Ended Dec. 31, 2015 - Dec 31, 2011 Dec. 31, 2020 $ 2,761,395 $ 1,866,916 $ 1,211,242 (11,779,284) (757,433) 10,806,912 115,710 415,180 533,278 293,126 (13,916,683) (694,011) 9,216,247 103,579 405,376 (45,576) 228,230 (94,443) (13,043,437) 999,880 7,532,088 83,157 320,657 (73,953) 81,640 (85,520) 70,066 Consolidated Statements of Cash Flows - USD ($) $ in Thousands Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by (used in) operating activities: Additions to content assets Change in content liabilities Amortization of content assets Depreciation and amortization of property, equipment and intangibles Stock-based compensation expense Foreign currency remeasurement loss (gain) on debt Other non-cash items Deferred income taxes Changes in operating assets and liabilities: Other current assets Accounts payable Accrued expenses and other liabilities Deferred revenue Other non-current assets and liabilities Net cash provided by (used in) operating activities Cash flows from investing activities: Purchases of property and equipment Change in other assets Net cash used in investing activities Cash flows from financing activities: Proceeds from issuance of debt Debt issuance costs Proceeds from issuance of common stock Other financing activities Net cash provided by financing activities Effect of exchange rate changes on cash, cash equivalents and restricted cash Net increase in cash, cash equivalents and restricted cash Cash and cash equivalents, beginning of year Cash, cash equivalents and restricted cash, end of year Supplemental disclosure: Comcast Balance Sheet Netflix Income Statement Comcast Income Statement (187,623) (41,605) 198,183 193,247 (194,075) 2,427,077 (252,113) 96,063 157,778 163,846 (122,531) (2,887,322) (200,192) 199,198 150,422 142,277 2,062 (2,680,479) (497,923) (7,431) (505,354) (253,035) (134,029) (387,064) (173,946) (165,174) (339,120) 1,009,464 (7,559) 235,406 0 1,237,311 36,050 3,195,084 5,043,786 8,238,870 4,469,306 (36,134) 72,490 0 4,505,662 469 1,231,745 3,812,041 5,043,786 3,961,852 (35,871) 124,502 (1,956) 4,048,527 (39,682) 989,246 2,822,795 3,812,041 Netflix Cash Flows Comcast Cash F... + 12 Months Ended Dec. 31, 2020 - Dec 31, 2018 - Dec 31, 2011 - Labels $ 103,564 $ 108,942 $ 94,507 Revenue 29,692 Programming and production Consolidated Statement of Income - USD ($) $ in Millions Revenue Costs and Expenses: Programming and production Other operating and administrative Advertising, marketing and promotion Depreciation Amortization Other operating gains 28,094 33,121 33,109 6,741 8,320 4,780 0 46,209 24 17,493 (4,588) 1,160 14,065 (3,364) 10,701 167 34,440 32,807 7,617 8,663 4,290 0 45,760 21,125 (4,567) 438 16,996 (3,673) 13,323 266 Operating income (loss) Interest expense Investment and other income (loss), net Income before income taxes Income tax (expense) benefit ( Net income Less: Net income attributable to noncontrolling interests and redeemable subsidiary preferred 7,036 Advertising, marketing and promotion 8,281 9,20 4.130 2,736 (341) ' 38,770 General and administrative 19,009 (3,542) Interest expense (225) Investment and other income (loss), net 15,242 Income before income taxes (3,380) Income tax (expense) benefit 11,862 Net income 131 Less: Net income attributable to noncontrolling interests $ 11,731 Net income attributable to Parent company stock Net income attributable to Comcast Corporation $ 10,534 $ 13,057 $ 2.30 $ 2.87 $ 2.56 Basic earnings per common share attributable to Comcast Corporation shareholders (in dollars per share) Diluted earnings per common share attributable to Comcast Corporation shareholders in dollars per share) $ 2.28 $ 2.83 $ 2.53 Netflix Balance Sheet Comcast Balance Sheet Netflix Income Statement Comcast Income Statement Netflix Cash ... 12 Months Ended Dec. 31, 2020 Dec. 31, 2019 Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands Revenues Cost of revenues Marketing Technology and development General and administrative $ 24,996,056 15,276,319 2,228,362 1,829,600 1,076,486 2,906,086 4,585,289 $ 20,156,447 12,440,213 2,652,462 1,545,149 914,369 2,459,518 2,604,254 Dec. 31, 2018 Labels $ 15,794,341 Revenue 9,967,538 Programming and production 2,369,469 Advertising, marketing and promotion 1,221,814 630,294 1,852,108 General and administrative 1,605,226 Operating income Other income (expense): Interest expense Interest and other income (expense) Income before income taxes Provision for income taxes Net income (767,499) (618,441) 3,199,349 (437,954) $ 2,761,395 (626,023) 84,000 2,062,231 (195,315) $ 1,866,916 (420,493) Interest expense 41,725 Investment and other income (loss), net 1,226,458 (15,216) Income tax (expense) benefit $1,211,242 $ 6.26 $6.08 $ 4.26 $ 4.13 $ 2.78 $ 2.68 Earnings per share: Basic (in USD per share) Diluted (in USD per share) Weighted-average common shares outstanding: Basic (in shares) Diluted in shares) 440,922 454,208 437,799 451,765 435,374 451,244 Netflix Balance Sheet Comcast Balance Sheet Netflix Income Statement Comcast Income Statement Netflix Cash ... + Dec. 31. 2 Dec. 31.2 - Dec 20 Labels Consolidated Balance Sheet - USD (5) Sin Millions Current Assets: Cash and cash equivalents Receivables, net Programming rights Other current assets $ 11,740 11,466 Cash and cash equivalents Other current assets Content assets, net Total current assets Film and television costs Investments Investment securing collateralized obligation 55,500 11,292 3,877 4,723 19,892 25,392 8,933 6,989 694 7,583 48,322 68,725 59,365 36,128 95,493 8,866 263,414 251,684 3,535 15,001 26,741 13,340 7,820 447 8.267 51,995 70,669 59,365 35,389 94,754 8,103 273.869 Investments Property and equipment, net Goodwill Property and equipment, net Goodwill Franchise rights Other intangible assets, net Other intangible assets, net Other non-current assets Other noncurrent assets, net Total assets Current Liabilities: Accounts payable and accrued expenses related to trade creditors Accrued participations and residuals Deferred revenue Accrued expenses and other current liabilities Current portion of long-term debt Total current liabilities Long-term debt, less current portion Collateralized obligation Accounts payable Current content liabilities Deferred revenue Accrued expenses and other liabilities Short-term debt 11,364 1,706 2,963 9.627 3,146 28.796 100,614 5,168 105,782 28,051 18,222 46,273 180.851 10,826 1,730 2,768 10,516 4,452 30,292 97,765 5,166 102,931 28,180 16,765 44.945 178.168 179.182 Long-term debt Deferred income taxes Other noncurrent liabilities Other noncurrent Other non current liabilities Total Liabilities Commitments and contingencies Redeemable noncontrolling interests and redeemable subsidiary preferred stock 1,280 1,372 Commitments and contingencies Redeemable noncontrolling interests and redeemable subsidiary preferred stock Preferred stock Equity: Preferred stock Common stock Additional pald-in capital 0 o 54 39,464 39,518 56,438 (7,517 1,894 0 54 38,447 38.501 50,695 17,517) 1,047 Retained earnings Treasury stock Accumulated other comprehensive income (loss) Common stock Retained earnings Treasury stock Accumulated other comprehensive income (loss) 71613 Total Comcast Corporation shareholders' equity Noncontrolling interests Total equity Total liabilities and equity 90,323 1,415 91.738 273,869 82.726 1.148 83,874 263,414 Noncontrolling interests 72.502 20,000,000 0 0 872,791,028 20,000,000 D 872,791,028 Preferred stock, shares authorized (in shares) Preferred stock, shares issued in shares) Treasury stock (in shares) Class A Common Stock [Member] Common stock, par value in dollars per share] Common stock, shares authorized (in shares) Common stock, shares issued in shares) Common stock, shares outstanding (in shares) - Class B Common Stock (Member) Common stock, par value in dollars per share] Common stock, shares authorized (in shares) Common stock, shares issued in shares) Common stock, shares outstanding in shares) Common Sized Balance Sheet $ 0.01 $ 0.01 $ 7,500,000,000 7,500,000,000 5,444,002,825 5,416,381,298 4,571,211,797 4543,590,270 $ 0.01 $ 0.01 75,000,000 75,000,000 9,444,375 9,444 375 9,444,375 9,444,375 Common Sized Income Statement Netflix Balance Sheet Comcast Balance Sheet ... + - Dec 31, 202 - Dec 31, 201 - Dec 31, 2011 , Labels Cash and cash equivalents Other current assets $8,205,550 1,556,030 9,761,580 25,383,950 960,183 3,174,646 39,280,359 $ 5,018,437 1,160,067 6,178,504 24,504,567 565,221 2,727,420 33,975,712 Content assets, net Property and equipment, net Other non-current assets 25,974,400 Consolidated Balance Sheets - USD ($) $ in Thousands Current assets: Cash and cash equivalents Other current assets Total current assets Content assets, net Property and equipment, net Other non-current assets Total assets Current liabilities: Current content liabilities Accounts payable Accrued expenses and other liabilities Deferred revenue Short-term debt Total current liabilities Non-current content liabilities Long term debt Current content liabilities Accounts payable Accrued expenses and other liabilities Deferred revenue Short-term debt 4,429.536 656.183 1,102,196 1,117,992 499,878 7,805,785 2,618,084 15,809,095 18,427.179 1.982,155 28,215,119 4,413,561 674,347 843,043 924.745 0 6,855,696 3,334,323 14.759,260 18,093,583 1,444,276 26,393,555 Long-term debt Other non-current liabilities 20,735,635 Commitments and contingencies 0 0 Preferred stock Other non-current liabilities Total liabilities Commitments and contingencies Stockholders' equity: Preferred stock. $0.001 par value; 10,000,000 shares authorized at December 31, 2020 and 2019; no shares issued and outstanding at December 31, 2020 and 2019 Common stock, 0.001 par value; 4.990,000,000 shares authorized at December 31, 2020 and December 31, 2019, respectively; 442,895,261 and 438,806,649 issued and outstanding at December 31, 2020 and December 31, 2019, respectively Accumulated other comprehensive income (loss) 3,447,698 2,793,929 Common stock 44,398 123,521) Accumulated other comprehensive income (loss) Retained earnings Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 7,573,144 11,065,240 $ 39,280,359 4,811,749 7,582,157 $ 33,975,712 5,238,765 Statement of Financial Position (Abstract] Preferred stock, par value in USD per share) Preferred stock, shares authorized (In shares) Preferred stock, shares issued (in shares) Preferred stock, shares outstanding (in shares) Common stock, par value (in USD per share) Common stock, shares authorized (in shares) Common stock, shares issued in shares) Common stock, shares outstanding in shares) $ 0.001 $ 0.001 10,000,000 10,000,000 0 0 0 0 0 $ 0.001 $ 0.001 4,990,000,000 4,990,000,000 442,895,261 438,806,649 442,895,261 438,806,649 ... Part V Cash Flows Common Sized Balance Sheet Common Sized Income Statement Netflix Balance Sheet Comca: ... *the wide difference here may be a mismatch with some of the costs being lumped into G&A Income Statement Revenue Programming and production Advertising, marketing and promotion General and administrative Operating Income (loss) Interest expense Investment and other income (loss), net Income before income taxes Income tax (expense) benefit Net income Less: Net income attributable to noncontrolling interests Net Income attributable to Parent company Netflix 12/31/2020 12/31/2017 100.00% 100.00% 61.11% 61.72% 8.91% 13.16% 11.63% 12.20% 18.34% 12.92% -3.07% -3.11% -2.47% 0.42% 12.80% 10.23% -1.75% -0.97% 11.05% 9.26% Comcast 12/31/2020 - 12/31/2019 100.00% 100.00% 31.98% 31.61% 6.51% 6.99% 44.62% 42.00% 16.89% 19.39% -4.43% -4.1994 1.12% 0.40% 13.58% 15.60% -3.25% -3.37% 10.33% 12.23% 0.00% 0.00% 0.16% 0.24% 11.05% 9.26% 10.17% 11.99% (0.00) Part V Cash Flows Common Sized Balance Sheet Common Sized Income Statement Netflix Balance Sheet Comca ... Netflix Dec. 31, 202 Dec. 31, 201 Comcast Dec. 31, 202 Dec. 31, 201 20.89% 3.96% 24.85% 64.62% 14.77% 3.41% 18.19% 72.12% 4.29% 5.48% 9.76% 4.87% 3.02% 18.99% 25.80% 34.60% 2.96% 100.00% Column1 Current assets: Cash and cash equivalents Other current assets Total current assets Content assets, net Investments Property and equipment, net Goodwill Other intangible assets, net Other non-current assets Total assets Current liabilities: Current content liabilities Accounts payable Accrued expenses and other liabilities 2.09% 7.55% 9.64% 3.39% 2.92% 18.34% 26.09% 36.25% 3.37% 100.00% 2.449 1.66% 8.08% 100.00% 8.03% 100.00% 11.28% 1.67% 12.99% 1.98% 0.62% 4.15% 0.66% 4.11% 2.81% 2.85% 1.27% 19.87% 46.91% 5.05% 71.83% 2.48% 2.72% 0.00% 20.18% 53.25% 4.25% 77.68% 3.51% 1.08% 1.15% 10.51% 38.63% 16.90% 66.04% 3.99% 1.05% 1.69% 11.50% 39.08% 17.06% 67.64% 0.47% 0.52% Deferred revenue Short-term debt Total current liabilities Long-term debt Other non-current liabilities Total liabilities Redeemable noncontrolling interests and redeemable subsidiary preferred stock Stockholders' equity: Preferred stock Common stock Accumulated other comprehensive income (loss) Retained earnings Treasury stock Total stockholders' equity Noncontrolling interests Total liabilities and stockholders' equity 0.00% 8.78% 0.00% 8.22% 0.00% 14.43% 0.00% 14.62% 0.11% 19.28% -0.07% 14.16% 0.69% 20.61% -2.74% 32.98% 0.52% 0.40% 19.25% -2.85% 31.41% 0.44% 28.17% 22.32% 100.00% 100.00% 100.00% 100.00% Part V Cash Flows Common Sized Balance Sheet Common Sized Income Statement Netflix Balance Sheet Comca