The following data were taken from Netflix, Inc.s 2013 annual report. All dollar amounts are in millions.

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The following data were taken from Netflix, Inc.€™s 2013 annual report. All dollar amounts are in millions.
The following data were taken from Netflix, Inc.€™s 2013 annual

Required
a. For each year, compute Netflix€™s debt to assets ratio, return on assets ratio, and return on equity ratio. You will need to compute total liabilities.
b. Did the company€™s level of financial risk increase or decrease from 2012 to 2013?
c. In which year did the company appear to manage its assets most efficiently?
d. Do the above ratios support the concept of financial leverage? Explain.

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Related Book For  book-img-for-question

Fundamental Financial Accounting Concepts

ISBN: 978-0078025907

9th edition

Authors: Thomas Edmonds, Christopher Edmonds

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