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Netflix, Inc. Data for the year ended December 31, 2023: Item Amount Revenue $60,000,000,000 Cost of Goods Sold $20,000,000,000 Operating Expenses $25,000,000,000 Income Tax
Netflix, Inc.
Data for the year ended December 31, 2023:
Item | Amount |
Revenue | $60,000,000,000 |
Cost of Goods Sold | $20,000,000,000 |
Operating Expenses | $25,000,000,000 |
Income Tax Expense | $10,000,000,000 |
Net Income | $5,000,000,000 |
Total Assets | $150,000,000,000 |
Total Liabilities | $100,000,000,000 |
Shareholders' Equity | $50,000,000,000 |
Requirements:
- Calculate Netflix's gross profit margin.
- Determine Netflix's operating profit margin.
- Analyze the impact of income tax expense on Netflix's net income.
- Evaluate how Netflix recognizes revenue from streaming subscriptions.
- Explain the significance of the Income Measurement Objective in Netflix's financial strategy.
- Discuss Netflix's debt-to-equity ratio and liquidity ratios.
- Perform a Cost-Benefit Analysis of Netflix's investment in original content production.
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