Compute and Analyze Measures for DuPont Disaggregation Analysis

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 $2018$

Revenues $$15,794,341$

Cost of revenues $9,967,538$

Marketing $2,369,469$

Technology and development $1,221,814$

General and administrative $630,294$

Operating income $1,605,226$

Other income $($expense$)$

Interest expense $(420,493)$

Interest and other income $41,725$

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 $20182017$

Current assets

Cash and cash equivalents $$3,794,483$ $$2,822,795$

Current content assets, net $5,151,1864,310,934$

Other current assets $748,466536,245$

Total current assets $9,694,1357,669,974$

Noncurrent content assets, net $14,960,95410,371,055$

Property and equipment, net $418,281319,404$

Other noncurrent assets $901,030652,309$

Total assets $$25,974,400$ $$19,012,742$

Current liabilities

Current content liabilities $$4,686,019$ $$4,173,041$

Accounts payable $562,985359,555$

Accrued expenses $477,417315,094$

Deferred revenue $760,899618,622$

Total current liabilities $6,487,3205,466,312$

Noncurrent content liabilities $3,759,0263,329,796$

Long$-$term debt $10,360,0586,499,432$

Other noncurrent liabilities $129,231135,246$

Total liabilities $20,735,63515,430,786$

Stockholders$$ equity

Preferred stock, $$0\mathrm{.}001$ par value $00$

Common stock, $$0\mathrm{.}001$ par value $2,315,9881,871,396$

Accumulated other comprehensive loss $(19,582)(20,557)$

Retained earnings $2,942,3591,731,117$

Total shareholders$$ equity $5,238,7653,581,956$

Total liabilities and shareholders$$ equity $$25,974,400$ $$19,012,742$

Combined federal and state statutory tax rate $22\%$b$.$ Compute net nonoperating obligations $($NNO$)$ for $2018$ and $2017.$

c$.$ Compute financial leverage $($FLEV$).$

d$.$ Compute NNEP and Spread.

e$.$ Compute the noncontrolling interest ratio $(NCl$ ratio$).$

f$.$ Confirm the relation: FLEV $$ Spread