- Netflix Inc Nflx Provides Internet Streaming Services Featuring Tv Series Documentaries And Films Throughout The W 1 (38 KiB) Viewed 57 times
- Netflix Inc Nflx Provides Internet Streaming Services Featuring Tv Series Documentaries And Films Throughout The W 2 (49.68 KiB) Viewed 57 times
Netflix, Inc. (NFLX) provides Internet streaming services featuring TV series, documentaries, and films throughout the world. Netflix's income statements through operating Income for two recent years are as follows (in thousands): Netflix, Inc. Income Statements For the Years Ended December 31 (In thousands) Year 2 Year 1 Revenues $20,156,447 $15,794,341 Operating expenses: Cost of revenues $(12,440,213) $(9,967,538) Marketing (2,652,462) (2,369,469) Technology and development (1,545,149) (1,221,814) General and administrative (914,369) (630,294) Total operating expenses $(17,552,193) $(14,189,115) Operating income $2,604,254 $1,605,226 Required:
a. Prepare a vertical analysis of the two income statements. Round percentages to one decimal place. Netflix, Inc. Income Statements For the Years Ended December 31 (in thousands) Year 2 Year 2 Year 1 Year 2 Amount Percent Amount Percent Revenues $20,156,447 % $15,794,341 X Operating expenses Cost of revenues $(12,440,213) % 5(9,967,538) Marketing (2,652,462) (2,369,469) % Technology and development (1,545,149) % (1,221,814) % General and administrative (914,369) % (630,294) % Total operating expenses (17,552,193) % $(14,189,115) % Operating income $2,604,254 $1,605,226 b. Interpret the vertical analysis in total The vertical analysis indicates that operating incom In total revenues. This is a result of total operating expenses revenges. Cost of revenues decreased le marketing Technology and development expenses Increased in total revenues. The only con was general and administrative expenses, which total revenues. Overall, Netflix its operations in Year 2 in