1. Please Prepare a common-size income statement and Calculate growth rates for sales and total operating expenses ??

Then Write an analysis of the income statement including explanations why trends have occurred ??

Table of Contents NETFLIX, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Year ended December 31, 2019 2018 2017 Revenues $ $ $ Cost of revenues 20,156,447 12,440,213 2,652,462 1,545,149 914,369 2,604,254 15,794,341 9,967,538 2,369,469 1,221,814 630,294 1,605,226 11,692,713 8,033,000 1,436,281 953,710 431,043 838,679 Marketing Technology and development General and administrative Operating income Other income (expense): Interest expense Interest and other income (expense) Income before income taxes Provision for (benefit from) income taxes Net income Earnings per share: Basic (626,023) 84,000 2,062,231 195,315 1,866,916 (420,493) 41,725 1,226,458 15,216 1,211,242 (238,204) (115,154) 485,321 (73,608) 558,929 $ $ $ $ 4.26 $ 2.78 $ 1.29 Diluted $ 4.13 $ 2.68 $ 1.25 Weighted average common shares outstanding: Basic 435,374 431,885 437,799 451,765 Diluted 451,244 446,814 See accompanying notes to consolidated financial statements. 41 Table of Contents