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Netflix Inc., a streaming service company, provided the following financial data: Sales: $3,000,000,000 Cost of Goods Sold: $1,500,000,000 Operating Expenses: $1,200,000,000 Interest Expense: $80,000,000 Tax
- Netflix Inc., a streaming service company, provided the following financial data:
- Sales: $3,000,000,000
- Cost of Goods Sold: $1,500,000,000
- Operating Expenses: $1,200,000,000
- Interest Expense: $80,000,000
- Tax Rate: 26%
- Total Assets: $2,800,000,000
- Total Liabilities: $1,800,000,000
- Shareholders' Equity: $1,000,000,000
Requirements:
- Prepare an Income Statement for Netflix.
- Calculate the Gross Margin and Operating Margin.
- Determine the Return on Assets (ROA) and Return on Equity (ROE).
- Calculate the Current Ratio and Quick Ratio (assuming Inventory is $50,000,000).
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