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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

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 millions 2018 2017 Current assets Cash and cash equivalents $3,794,483 $2,822,795 Current content assets, net 5,151,186 4,310,934 Other current assets 748,466 536,245 Total current assets 9,694,135 7,669,974 Noncurrent content assets, net 14,960,954 10,371,055 Property and equipment, net 418,281 319,404 Other noncurrent assets 901,030 652,309 Total assets 25,974,400 $19,012,742 Current liabilities Current content liabilities $4,686,019 $4,173,041 Accounts payable 562,985 359,555 Accrued expenses 477,417 315,094 Deferred revenue 760,899 618,622 Total current liabilities 6,487,320 5,466,312 Noncurrent content liabilities 3,759,026 3,329,796 Long-term debt 10,360,058 6,499,432 Other noncurrent liabilities 129,231 135,246 Total liabilities 20,735,635 15,430,786 Stockholders equity Preferred stock, $0.001 par value 0 0 Common stock, $0.001 par value 2,315,988 1,871,396 Accumulated other comprehensive loss (19,582) (20,557) Retained earnings 2,942,359 1,731,117 Total shareholders equity 5,238,765 3,581,956 Total liabilities and shareholders equity $25,974,400 $19,012,742 Required a. Compute ROE and ROA for 2018. Do not round until your final answers. Round answer to two decimal places. 2018 ROE = Answer 27.46 % 2018 ROA = Answer 5.38 % b. Confirm that ROE equals ROE computed using the component measures for profit margin, assets turnover, and financial leverage: ROE = PM AT FL. Do not round until your final answer. Round answers two decimal places. PM = Answer 7.67 % AT = Answer 0.7 FL = Answer 5.1 c. Compute adjusted ROA (assume a statutory tax rate of 22%). Round answer to two decimal places (ex: 0.03456 = 3.46%). Adjusted ROA = Answer I found 6.84 % but they says it is incorrect.

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