Question

Hello,
I need help with the question. this is on Netflix. you can find the information from Netflix annual report 2017 which is online, that why I can't send it here.
and please tell the page no. too in which it requires
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This is the full information. you just have to look in thile Netflix annual report 2017
Thank you

5. Compare the current, quick and debt to total asset ratios computed with industry averages. (Remember that the debt to total asset ratio may also be called total debt to equity) Your Company Netflix Industry Average Current Ratio Quick Ratio Debt to Total Asset How do these results compare to industry average? Refer to the financing activities section of the company's cash flow statement. Page(s) a. What was the amount of new borrowings during each of the years presented? 6. i. This year ii. Last year ii Two years ago b. What was the amount of debt repaid during each of the years presented? i. This year ii. Last year i. Two years ago Did these activities result in a net increase or decrease in the company's cash balance? C. i. This year ii. Last year ii. Two years ago Information for Decision Makers Evaluate the company's debt-paying ability. Use complete sentences. Refer to the ratios and other information obtained above. Your analysis should include a consideration of un-used lines of credit and of any existing off-balance sheet financing arrangements. 7.

Answer 1

5		NetFlix		Industry Average
	Current Ratio	1.4031351
	Current Asset	76,69,974
	Current liabilities	54,66,312
	Quick Ratio	0.5163984		0.4
	Cash and cash equivalents	28,22,795
	Short-term investments	0
	Current liabilities	54,66,312
	Debt to Total Assets	0.5169811		0.2
	Non-current content liabilities	33,29,796
	Long-term debt	64,99,432
	Short term loans	0
	Total Assets	1,90,12,742
6
a	The amount of new borrowings for each of the years presented (Amounts are in thousands)
	i	30,20,510
	ii	10,00,000
	iii	15,00,000
b	The amount of debt repaid during each of years presented
	i	There is not repayment of debt as the debt is increasing every year
	ii	There is not repayment of debt as the debt is increasing every year
	iii	There is not repayment of debt as the debt is increasing every year
c
	i	Net increase in the company's cash balance
	ii	Net increase in the company's cash balance
	iii	Net increase in the company's cash balance

7. The company has the ability to pay its debts. This can be concluded from the above calculated ratios. Netflix has quick ratio of 0.516 which is more than industry average rate of 0.4. It shows that company has enough cash to pay of its current liabilities on time. Netflix debt to total assets ratio is 0.516 which is more than industry rate of 0.20. Even though it is more than industry rate still the company can meet its debt requirements on time as the current and quick ratios are good when compared to industry average rates.