Using only the financial statement excerpts from Netflixs FY19 10-K, answer the questions below.

1. Use Porters Five Forces to analyze Netflix and its position in the industry. Be sure to use information from the Item 1 disclosures from the 10-K in your assessment. (Your answer should be succinct and can be presented in an exhibit style format.) 2. What is the book value of equity of Netflix as of the end of fiscal years 2018 and 2019? 3. What is the market value of equity of Netflix as of the end of fiscal year 2019? (Use the average 2019 Netflix daily closing stock price of $328.89 in your calculation.) 4. Calculate the ratio of the market value of equity to the book value of equity for 2019. Identify 2 primary reasons why you think the market value is different from the book value in the case of Netflix. 5. If Netflix recognized all payments from customers as revenue upon receipt, what would Revenues have been in fiscal years 2018 and 2019? 6. Why does Stock-based compensation expense show up as a positive adjustment in the operating section of the Statement of Cash Flows for fiscal year 2019? 7. Free cash flow (FCF) is a non-GAAP metric usually meant to measure how much cash a firm generates from its operations after accounting for cash spent on investing in its operations. A generic definition of FCF that you will commonly see is the amount of cash flow from operation activities (CFO) that is left after deducting all cash flow from investing activities (CFI). However, Netflix calculates their own version of free cash flow on pages 25-26 of their 10-K. Compute the generic version of FCF for both fiscal years 2017 and 2019, and then compare it to Netflixs version of FCF. Discuss whether you judge Netflixs version of FCF better captures its operating performance than the generic version of free cash flows. 8. Why did Interest and other income (expense) increase from $41,725 in 2018 to $84,000 in fiscal year 2019? 9. What was the average price paid for stock issued in fiscal year 2018 and 2019? How does this compare to the average market price of the stock during these two years? (Use the average 2019 Netflix daily closing stock price of $328.89 and average 2018 daily closing stock price of $319.50 in your calculations.)