The management of Netflix has approached your bank about a line of credit. They are shopping for the largest line of credit and the best rate possible. Analyze the accounting statements and write a one-page recommendation to your credit committee that includes if you think you should approve a line of credit. If so, state how much, and a suggested interest rate. Explain your rationale and any assumptions you have made. Your summary should be at least 300 words.

Accounting Statement

Period Ending 31-Dec-14 31-Dec-13 31-Dec-12 2015 2016 2017 2018 2019 Assets Current Assets 1,113,60B 494,888 604,965 595,440 290, 291 457,787 $ 1,202,696.64 $ 5 534,479.04 $ 1,298,912.37 $ 577,237.36 $ 1,402,825.36 $ 623,416.35 $ 1,515,051.39 $ 673,289.66 $ 1,636,255.50 727,152.83 Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets 2,331,973 1,858,358 1,492,713 $ 2,518,530.84 $ 2,720,013.31 $ 2,937,614.37 $ 3,172,623.52 $ 3,426,433,40 3,940,469 3,058,763 2,240,791 $ 4,255,706.52 $ 4,596,163.04 $ 4,963,856.08 $ 5,360,964.57 $ 5,789,841.74 149,875 133,605 131,681 $ 161,865.00 $ 174,814.20 $ 188,799.34 $ 203,903.28 $ 220,215.55 Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges 2,773,326 2,091,071 1,506,00 $ 2.995,192.08 $ 3,234,807.45 $ 3,493,592.04 $ 3,773,079.41 $ 4,074,925.76 192,981 129,124 89,410 $ 208,419.48 $ 225,093.04 $ 243,100.48 5 262,548.52 $ 283,552.40 Total Assets 7,056,651 5,412,563 3,967,890 $ 11,876,889.60 $ 12,827,040.77 $ 13,853,204.03 $ 14,961,460.35 $ 16,158,377.18 Liabilities Current Liabilities 271,327 162,453 139,607 $ $ 293,033.16 $ 316,475.81 $ 341,793.88 $ 369,137.39 $ 398,668.38 Accounts Payable Short/Current Long Terrn Debt Other Current Liabilities 2,391,827 1,991,750 1,536,319 $ 2,583,173.16 $ 2,769,827.01 $ 3,013,013.17 $ 3,254,054.23 $ 3,514,378.57 2,663,154 900,000 1,635,789 2,154,203 500,000 1,424,799 1,675,926 400,000 1,147,291 $ 2,876,205.32 $ 3,106,302.83 $ 3,354,807.05 $ 3,623,191.62 $ 3,913,046.95 $ 50,972,000.00 $ 105,049,760.00 $ 163,453,740.80 $ 226,530,040.06 $ 294,652,443.27 $ 1,766,652.12 $ 1,907,984.29 $ 2,060,623.03 $ 2,225,472.88 $ 2,403,510.71 Total Current Liabilities Long Term Debt Other Liabilities Deferred Long Term Liability Charges Minority Interest Negative Goodwill Total Liabilities 5,198,943 4,079,002 079,002 3,223,217 $ 58,491,064.76 $ 113,170,349.94 $ 172,223,977.94 $ 226,001,896.17 $ 304,882,047.86 Period Ending Total Revenue Cost of Revenue 31-Dec-14 31-Dec-13 31-Dec-12 5,504,656 4,374,562 3,609,282 3,752,760 3,117,203 2,652,058 $ $ 2015 5,945,028 ! $ 4,052,981 $ 2016 6,420,631 $ 4,377,219 $ 2017 6,934,281 $ 4,727,397 $ 2018 7,489,024 $ 5,105,589 $ 2019 8,088,146 5,514,036 Gross Profit 1,751,896 1,257,359 957,224 $ 1,892,048 $ 2,043,411 $ 2,206,884 $ 2,383,435 $ 2,574,110 Operating Expenses Research Development Selling General and Administrative Non Recurring Others 472,321 876,927 378,769 650,243 329,008 578,224 $ $ 510,107 $ 947,081 $ 550,915 $ 1,022,848 $ 594,988 $ 1,104,675 $ 642,588 $ 1,193,050 $ 693,995 1,288,493 Total Operating Expenses Operating income or Loss 402,648 228,347 49,992 $ 434,860 $ 469,649 $ 507,221 $ 547,798 $ 591,622 Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest -3,060 399,588 50,219 349,369 82,570 -28.131 200,216 29,142 171,074 58,671 474 50,466 19,986 30,480 13,328 $ (3,304.80) $ (3,569.18) $ (3,854.72) $ (4,163.10) $ 14,496.14) $ 431,555.04 $ 466,079.44 $ 503,365.79 $ 543,635.07 $ 587,125.87 $ 387,569.85 $ 391,908.77 $ 396,594.81 $ 401,655.73 $ 407,121.52 $ 43,985.19 $ 74,170.66 $ 106,770.98 $ 141,979.34 $ 180,004.35 $ 89,175.60 $ 96,309.65 $ 104,014.42 $ 112,335.57 $ 121,322.42 Net Income From Continuing Ops 266,799 87,274 17,152 $ (45,190.41) $ (22,138.98) $ 2,756.56 $ 29,643.76 $ 58,681.93 Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items . - - - - 266,799 112,403 17,152 $ 145,190.41) $ (22,138.98) $ 2,756.56 $ 29,643.76 $ 58,681.93 Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 266,799 112,403 17,152 $ 145,190.41) $ (22,138.98) $ 2,756.56 $ 29,643.76 $ 58,681.93 Period Ending 31-Dec-14 31-Dec-13 31-Dec-12 2015 2016 2017 2018 2019 Assets Current Assets 1,113,60B 494,888 604,965 595,440 290, 291 457,787 $ 1,202,696.64 $ 5 534,479.04 $ 1,298,912.37 $ 577,237.36 $ 1,402,825.36 $ 623,416.35 $ 1,515,051.39 $ 673,289.66 $ 1,636,255.50 727,152.83 Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets 2,331,973 1,858,358 1,492,713 $ 2,518,530.84 $ 2,720,013.31 $ 2,937,614.37 $ 3,172,623.52 $ 3,426,433,40 3,940,469 3,058,763 2,240,791 $ 4,255,706.52 $ 4,596,163.04 $ 4,963,856.08 $ 5,360,964.57 $ 5,789,841.74 149,875 133,605 131,681 $ 161,865.00 $ 174,814.20 $ 188,799.34 $ 203,903.28 $ 220,215.55 Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges 2,773,326 2,091,071 1,506,00 $ 2.995,192.08 $ 3,234,807.45 $ 3,493,592.04 $ 3,773,079.41 $ 4,074,925.76 192,981 129,124 89,410 $ 208,419.48 $ 225,093.04 $ 243,100.48 5 262,548.52 $ 283,552.40 Total Assets 7,056,651 5,412,563 3,967,890 $ 11,876,889.60 $ 12,827,040.77 $ 13,853,204.03 $ 14,961,460.35 $ 16,158,377.18 Liabilities Current Liabilities 271,327 162,453 139,607 $ $ 293,033.16 $ 316,475.81 $ 341,793.88 $ 369,137.39 $ 398,668.38 Accounts Payable Short/Current Long Terrn Debt Other Current Liabilities 2,391,827 1,991,750 1,536,319 $ 2,583,173.16 $ 2,769,827.01 $ 3,013,013.17 $ 3,254,054.23 $ 3,514,378.57 2,663,154 900,000 1,635,789 2,154,203 500,000 1,424,799 1,675,926 400,000 1,147,291 $ 2,876,205.32 $ 3,106,302.83 $ 3,354,807.05 $ 3,623,191.62 $ 3,913,046.95 $ 50,972,000.00 $ 105,049,760.00 $ 163,453,740.80 $ 226,530,040.06 $ 294,652,443.27 $ 1,766,652.12 $ 1,907,984.29 $ 2,060,623.03 $ 2,225,472.88 $ 2,403,510.71 Total Current Liabilities Long Term Debt Other Liabilities Deferred Long Term Liability Charges Minority Interest Negative Goodwill Total Liabilities 5,198,943 4,079,002 079,002 3,223,217 $ 58,491,064.76 $ 113,170,349.94 $ 172,223,977.94 $ 226,001,896.17 $ 304,882,047.86 Period Ending Total Revenue Cost of Revenue 31-Dec-14 31-Dec-13 31-Dec-12 5,504,656 4,374,562 3,609,282 3,752,760 3,117,203 2,652,058 $ $ 2015 5,945,028 ! $ 4,052,981 $ 2016 6,420,631 $ 4,377,219 $ 2017 6,934,281 $ 4,727,397 $ 2018 7,489,024 $ 5,105,589 $ 2019 8,088,146 5,514,036 Gross Profit 1,751,896 1,257,359 957,224 $ 1,892,048 $ 2,043,411 $ 2,206,884 $ 2,383,435 $ 2,574,110 Operating Expenses Research Development Selling General and Administrative Non Recurring Others 472,321 876,927 378,769 650,243 329,008 578,224 $ $ 510,107 $ 947,081 $ 550,915 $ 1,022,848 $ 594,988 $ 1,104,675 $ 642,588 $ 1,193,050 $ 693,995 1,288,493 Total Operating Expenses Operating income or Loss 402,648 228,347 49,992 $ 434,860 $ 469,649 $ 507,221 $ 547,798 $ 591,622 Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest And Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest -3,060 399,588 50,219 349,369 82,570 -28.131 200,216 29,142 171,074 58,671 474 50,466 19,986 30,480 13,328 $ (3,304.80) $ (3,569.18) $ (3,854.72) $ (4,163.10) $ 14,496.14) $ 431,555.04 $ 466,079.44 $ 503,365.79 $ 543,635.07 $ 587,125.87 $ 387,569.85 $ 391,908.77 $ 396,594.81 $ 401,655.73 $ 407,121.52 $ 43,985.19 $ 74,170.66 $ 106,770.98 $ 141,979.34 $ 180,004.35 $ 89,175.60 $ 96,309.65 $ 104,014.42 $ 112,335.57 $ 121,322.42 Net Income From Continuing Ops 266,799 87,274 17,152 $ (45,190.41) $ (22,138.98) $ 2,756.56 $ 29,643.76 $ 58,681.93 Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items . - - - - 266,799 112,403 17,152 $ 145,190.41) $ (22,138.98) $ 2,756.56 $ 29,643.76 $ 58,681.93 Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 266,799 112,403 17,152 $ 145,190.41) $ (22,138.98) $ 2,756.56 $ 29,643.76 $ 58,681.93