PLEASE ANSWER THE QUESTIONS A-E

Required:

a.	What are the potential sources of dilution of NetFlixs earnings per share?
b.	List two additional dilutive securities (other than those NetFlix includes).
c.	NetFlix did not include all outstanding employee stock options in the calculation of diluted net income per share in 2016? Why not? How many options were excluded?
d.	Calculate basic EPS for each of the three years.
e.	Calculate diluted EPS for each of the three years.

The 2016 Form 10-K of NetFlix includes the following footnoted information. Use this information to answer the required The computation of net income per share is as follows: Year ended December 2016 (in 31 2015 2014 except per share data) Basic earnings per share Net income Shares used in computation Weighted-average common shares outstanding Diluted earnings per share Net income Shares used in computation Weighted-average common shares outstanding Employee stock options Weighted-average number of shares S 186,678 S 122,641 266,799 428,822 425,889 20,544 S 186,678 122,641 S266,799 428,822 9,830 438,652 425,889 10,567 436,456 420,544 11,350 431,894 Employee stock options with exercise prices greater than the average market price of the common stock were excluded from the diluted calculation as their inclusion would have been anti-dilutive The following table summarizes the potential common shares excluded from the diluted calculation (in thousands) 2016 2015 2014 Year 31 Employee stock options ended (in thousands) 1,545 Required a. What are the potential sources of dilution of NetFlix's earnings per share? b. List two additional dilutive securities (other than those NetFlix includes). c. NetFlix did not include all outstanding employee stock options in the calculation of diluted net income per share in 2016? Why not? How many options were excluded? Calculate basic EPS for each of the three years Calculate diluted EPS for each of the three years d. e