• Netflix, Inc. invested $5 billion in original content production during the year. The company reported the following financial information:
  • Investment in Original Content: $5 billion
  • Total Revenue: $30 billion
  • Operating Expenses: $22 billion
  • Net Income: $4 billion

• Requirements:
  1. Calculate Netflix's operating profit margin after accounting for the investment in original content.
  2. Prepare an income statement showing the impact of original content investment on net income.
  3. Analyze the strategic benefits of investing in original content for Netflix.
  4. Discuss the accounting treatment of content production expenses in Netflix's financial statements.
  5. Evaluate the impact of original content investment on Netflix's subscriber growth and market share.