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For Netflix, sales is the product of the number of subscribers and the price charged for each subscription. What observations can you make about the previous three years of Netflix’s sales? Given this data, provide any predictions you can make about the future financial performance of Netflix. What nonfinancial factors influenced that prediction?

For Netflix, sales is the product of the number of subscribers and the price charged for each subscription. What observations can you make about the previous three years of Netflix’s sales? Given this data, provide any predictions you can make about the future financial performance of Netflix. What nonfinancial factors influenced that prediction?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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 The following information was taken from the Netflix financial statements.

 

For Netflix, sales is the product of the number of subscribers and the price charged for each subscription. What observations can you make about the previous three years of Netflix’s sales? Given this data, provide any predictions you can make about the future financial performance of Netflix. What nonfinancial factors influenced that prediction?

 

**Netflix, Inc. - Consolidated Statement of Operations for the Years 2014, 2015, and 2016** | Date | Sales | |---------------|------------------| | Dec. 31, 2014 | $5,504,656* | | Dec. 31, 2015 | $6,779,511 | | Dec. 31, 2016 | $8,830,669 | *Note: Dollar values are in thousands of US dollars. *Source: United States Securities and Exchange Commission. “Netflix, Inc. Consolidated Statements of Operations.” www.sec.gov*
Transcribed Image Text:**Netflix, Inc. - Consolidated Statement of Operations for the Years 2014, 2015, and 2016** | Date | Sales | |---------------|------------------| | Dec. 31, 2014 | $5,504,656* | | Dec. 31, 2015 | $6,779,511 | | Dec. 31, 2016 | $8,830,669 | *Note: Dollar values are in thousands of US dollars. *Source: United States Securities and Exchange Commission. “Netflix, Inc. Consolidated Statements of Operations.” www.sec.gov*
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