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The following information was taken from the Netflix financial statements. For Netflix, sales is the product of the number of subscribers and the price charged

The following information was taken from the Netflix financial statements.image text in transcribed

For Netflix, sales is the product of the number of subscribers and the price charged for each subscription. What observations can you make about the previous three years of Netflixs sales? Given this data, provide any predictions you can make about the future financial performance of Netflix. What nonfinancial factors influenced that prediction?

NETFLIX, INC. Consolidated Statement of Operations For the Years 2014, 2015, and 2016 Dec. 31, 2014 Dec. 31, 2015 Dec. 31, 2016 Sales $5,504,656* $6,779,511 $8,830,669 *Dollar values are in thousands of US dollars. Source: United States Security and Exchange Commission. "Netflix, Inc. Consolidated Statements of Operations." www.sec.gov

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