Using information on JNJ and NFLX from Yahoo Finance apply Ohlson o-score and show work. NFLX Income Statement All numbers in thousands Revenue 12/31/2015 12/31/2014 12/31/2013 Total Revenue 6,779,511 5,504,656 4,374,562 Cost of Revenue 4,591,476 3,752,760 3,117,203 Gross Profit 2,188,035 1,751,896 1,257,359 Operating Expenses Research Development 650,788 472,321 378,769 Selling General and Administrative 1,231,421 876,927 650,243 Non Recurring - - - Others - - - Total Operating Expenses - - - Operating Income or Loss 305,826 402,648 228,347 Income from Continuing Operations Total Other Income/Expenses Net -31,225 -3,060 -28,131 Earnings Before Interest and Taxes 274,601 399,588 200,216 Interest Expense 132,716 50,219 29,142 Income Before Tax 141,885 349,369 171,074 Income Tax Expense 19,244 82,570 58,671 Minority Interest - - - Net Income From Continuing Ops 122,641 266,799 87,274 Non-recurring Events Discontinued Operations - - - Extraordinary Items - - - Effect Of Accounting Changes - - - Other Items - - - Net Income Net Income 122,641 266,799 112,403 Preferred Stock And Other Adjustments - - - Net Income Applicable To Common Shares 122,641 266,799 112,403 Cash Flow All numbers in thousands Period Ending 12/31/2015 12/31/2014 12/31/2013 Net Income 122,641 266,799 112,403 Operating Activities, Cash Flows Provided By or Used In Depreciation 3,547,045 2,781,798 2,241,680 Adjustments To Net Income -4,592,012 -3,168,777 -2,357,062 Changes In Accounts Receivables - - - Changes In Liabilities 172,560 198,267 66,610 Changes In Inventories - - - Changes In Other Operating Activities 327 -61,604 34,200 Total Cash Flow From Operating Activities -749,439 16,483 97,831 Investing Activities, Cash Flows Provided By or Used In Capital Expenditures -91,248 -69,726 -54,143 Investments -8,074 100,316 -141,837 Other Cash flows from Investing Activities -79,870 -73,456 -59,988 Total Cash Flows From Investing Activities -179,192 -42,866 -255,968 Financing Activities, Cash Flows Provided By or Used In Dividends Paid - - - Sale Purchase of Stock 60,351 53,464 115,143 Net Borrowings 1,499,455 398,907 279,458 Other Cash Flows from Financing Activities - - - Total Cash Flows From Financing Activities 1,640,277 541,712 476,264 Effect Of Exchange Rate Changes -15,924 -6,686 -3,453 Change In Cash and Cash Equivalents 695,722 508,643 314,674 Balance Sheet All numbers in thousands Period Ending 12/31/2015 12/31/2014 12/31/2013 Current Assets Cash And Cash Equivalents 1,809,330 1,113,608 604,965 Short Term Investments 501,385 494,888 595,440 Net Receivables - - - Inventory - - - Other Current Assets 3,121,125 2,318,557 1,858,358 Total Current Assets 5,431,840 3,927,053 3,058,763 Long Term Investments - - - Property Plant and Equipment 173,412 149,875 133,605 Goodwill - - - Intangible Assets 4,312,817 2,773,326 2,091,071 Accumulated Amortization - - - Other Assets 284,802 192,246 129,124 Deferred Long Term Asset Charges - - - Total Assets 10,202,871 7,042,500 5,412,563 Current Liabilities Accounts Payable 393,880 271,327 162,453 Short/Current Long Term Debt - - - Other Current Liabilities 3,135,744 2,391,827 1,991,750 Total Current Liabilities 3,529,624 2,663,154 2,154,203 Long Term Debt 2,371,362 885,849 500,000 Other Liabilities 2,078,459 1,635,789 1,424,799 Deferred Long Term Liability Charges - - - Minority Interest - - - Negative Goodwill - - - Total Liabilities 7,979,445 5,184,792 4,079,002 Stockholders' Equity Misc. Stocks Options Warrants - - - Redeemable Preferred Stock - - - Preferred Stock - - - Common Stock 1,324,809 1,042,870 60 Retained Earnings 941,925 819,284 552,485 Treasury Stock - - - Capital Surplus - - 777,441 Other Stockholder Equity -43,308 -4,446 3,575 Total Stockholder Equity 2,223,426 1,857,708 1,333,561 Net Tangible Assets -2,089,391 -915,618 -757,510 JNJ Balance Sheet All numbers in thousands Period Ending 1/3/2016 12/28/2014 12/31/2013 Current Assets Cash And Cash Equivalents 13,732,000 14,523,000 20,927,000 Short Term Investments 24,644,000 18,566,000 8,279,000 Net Receivables 10,734,000 10,985,000 15,320,000 Inventory 8,053,000 8,184,000 7,878,000 Other Current Assets 3,047,000 3,486,000 4,003,000 Total Current Assets 60,210,000 55,744,000 56,407,000 Long Term Investments - - - Property Plant and Equipment 15,905,000 16,126,000 16,710,000 Goodwill 21,629,000 21,832,000 22,798,000 Intangible Assets 25,764,000 27,222,000 27,947,000 Accumulated Amortization - - - Other Assets 4,413,000 3,232,000 4,949,000 Deferred Long Term Asset Charges 5,490,000 6,202,000 3,872,000 Total Assets 133,411,000 130,358,000 132,683,000 Current Liabilities Accounts Payable 20,743,000 21,393,000 20,823,000 Short/Current Long Term Debt 7,004,000 3,638,000 4,852,000 Other Current Liabilities - - - Total Current Liabilities 27,747,000 25,031,000 25,675,000 Long Term Debt 12,857,000 15,122,000 13,328,000 Other Liabilities 19,095,000 18,006,000 15,638,000 Deferred Long Term Liability Charges 2,562,000 2,447,000 3,989,000 Minority Interest - - - Negative Goodwill - - - Total Liabilities 62,261,000 60,606,000 58,630,000 Stockholders' Equity Misc. Stocks Options Warrants - - - Redeemable Preferred Stock - - - Preferred Stock - - - Common Stock 3,120,000 3,120,000 3,120,000 Retained Earnings 103,879,000 97,245,000 89,493,000 Treasury Stock -22,684,000 -19,891,000 -15,700,000 Capital Surplus - - - Other Stockholder Equity -13,165,000 -10,722,000 -2,860,000 Total Stockholder Equity 71,150,000 69,752,000 74,053,000 Net Tangible Assets 23,757,000 20,698,000 23,308,000 JNJ Income Statement All numbers in thousands Revenue 1/3/2016 12/28/2014 12/31/2013 Total Revenue 70,074,000 74,331,000 71,312,000 Cost of Revenue 21,536,000 22,746,000 22,342,000 Gross Profit 48,538,000 51,585,000 48,970,000 Operating Expenses Research Development 9,046,000 8,494,000 8,183,000 Selling General and Administrative 21,203,000 21,954,000 21,830,000 Non Recurring 733,000 178,000 580,000 Others - - - Total Operating Expenses - - - Operating Income or Loss 17,556,000 20,959,000 18,377,000 Income from Continuing Operations Total Other Income/Expenses Net 2,192,000 137,000 -2,424,000 Earnings Before Interest and Taxes 19,748,000 21,096,000 15,953,000 Interest Expense 552,000 533,000 482,000 Income Before Tax 19,196,000 20,563,000 15,471,000 Income Tax Expense 3,787,000 4,240,000 1,640,000 Minority Interest - - - Net Income From Continuing Ops 15,409,000 16,323,000 13,831,000 Non-recurring Events Discontinued Operations - - - Extraordinary Items - - - Effect Of Accounting Changes - - - Other Items - - - Net Income Net Income 15,409,000 16,323,000 13,831,000 Preferred Stock And Other Adjustments - - - Net Income Applicable To Common Shares 15,409,000 16,323,000 13,831,000 Cash Flow All numbers in thousands Period Ending 1/3/2016 12/28/2014 12/31/2013 Net Income 15,409,000 16,323,000 13,831,000 Operating Activities, Cash Flows Provided By or Used In Depreciation 3,746,000 3,895,000 4,104,000 Adjustments To Net Income -1,215,000 -681,000 307,000 Changes In Accounts Receivables -433,000 -247,000 -632,000 Changes In Liabilities -3,000 955,000 1,821,000 Changes In Inventories -449,000 -1,120,000 -622,000 Changes In Other Operating Activities 2,224,000 -654,000 -1,395,000 Total Cash Flow From Operating Activities 19,279,000 18,471,000 17,414,000 Investing Activities, Cash Flows Provided By or Used In Capital Expenditures -3,463,000 -3,714,000 -3,595,000 Investments -6,679,000 -10,794,000 -865,000 Other Cash flows from Investing Activities 2,407,000 2,203,000 -643,000 Total Cash Flows From Investing Activities -7,735,000 -12,305,000 -5,103,000 Financing Activities, Cash Flows Provided By or Used In Dividends Paid -8,173,000 -7,768,000 -7,286,000 Sale Purchase of Stock -3,995,000 -5,342,000 -889,000 Net Borrowings 1,379,000 850,000 2,028,000 Other Cash Flows from Financing Activities -57,000 -57,000 56,000 Total Cash Flows From Financing Activities -10,846,000 -12,260,000 -6,091,000 Effect Of Exchange Rate Changes -1,489,000 -310,000 -204,000 Change In Cash and Cash Equivalents -791,000 -6,404,000 6,016,000