Question
I only need help with the adjusted ROA. I have answered the rest. Thanks! Compute and Analyze Measures for DuPont Disaggregation Analysis The 2018 balance
I only need help with the adjusted ROA. I have answered the rest. Thanks!
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
%
2018 ROA = Answer
%
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
%
AT = Answer
FL = Answer
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
%
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