Presented below are SWOT analyses for Netflix and JetBlue prepared as of December 7, 2021, and sourced from D&B Hoovers. SWOT is a familiar acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. Strengths and Weaknesses describe conditions internal to the organization. Opportunities and Threats are terms used to describe the external environment within which the organizations operate. Not surprisingly, COVID-19 is identified as a threat for JetBlue but not for Netflix. Module 7 Netflix, Inc. JetBlue Airways Corporation Strengths.

Required: Financial data for JetBlue are provided in the accompanying Excel Spreadsheet prepared for this Module Submission. Over the three years included in the Excel Spreadsheet, sales and gross margin for JetBlue have changed dramatically due to travel bans and other secondary effects of the COVID[1]19 pandemic.

4.1 (3 points) To approximate the drop in revenue from December 31, 2019, to December 31, 2020, that is associated with the impact of COVID-19, express the change in revenue from fiscal year 2019 to fiscal year 2020 as a percentage of the revenue reported for the year ended December 31, 2019. Include Other revenue in the calculation. Round percentage to 1 decimal place. Answer: _______ %

4.2 (3 points) Faced with a dramatic drop in revenue in fiscal year 2020, JetBlue would be expected to focus on cost containment. Costs that cannot be reduced by more than 20% during a period when there is a much greater decline in revenue are considered to be costs that are classified as semi[1]fixed costs in the short run. Using this classification, which of the costs and expenses reported by JetBlue in fiscal-year 2020 would be classified as semi-fixed in the short run? Answer:

4.3 (3 points) Aircraft fuel and related taxes is an expense that is likely to be a variable cost and vary directly as a function of revenue. Was the management of JetBlue successful in employing the practice of flexible budgeting to reduce the expense for aircraft fuel and related taxes in fiscal-year 2020 to a level that should be expected for a cost that is a variable cost? Include the necessary numerical calculations needed to support your response.

Answer:

4.4 When faced with a devasting financial crisis, running out of cash is a short route to bankruptcy and financial failure. A company that has no cash cannot pay operating costs and meet financial obligations. For JetBlue, the balances in cash and current investments in marketable securities reported as of December 31, 2020, are significantly greater than in previous years. On first consideration, this increase appears to be contraindicated; a company experiencing a devasting financial crisis shouldnt be expected to report a significant increase in cash. The success of the leadership of JetBlue in being resourceful and responding to a looming cash crisis by shoring up their cash position is reflected in the Dunn and Bradstreet SWOT analysis, which lists Cash Position as one of JetBlues strengths.

4.4.A (3 points) How much of the increase in cash during fiscal-year 2020 is the result of financing activities? Answer: $____________________