1. How do you interpret Netflix's adjustment for accrued expressions and other liabilities (198,183) in its operating cash flows?

2. How do you interpret Netflix's adjustment for deferred revenue (183, 247) in its operating cash flows?

3. How do you interpret Comcast's adjustment for current and noncurrent receivables, net (-20) in its operating cash flows? (2-4 sentences)

4. How do you interpret Comcast's adjustment for Accounts Payable and accrued expenses (-266) in its operating cash flows?

5.2020 was an odd year. Many companies grew their cash balances to increase liquidity during the pandemic. To look at a more normal year, we will analyze the year ending 12/31/2019 for this question. Based on each company's cash flow patterns, what stage of the corporate life cycle is each firm in? Explain. (1-3 sentences each company)

Supporting data below:

sup 1: Comcast comprehensive income

sup 2: Netflix comprehensive income

sup 3: Comcast SE

sup 4: Netflix SE

sup 5: Comcast cash flow

sup 6: Netflix cashflows

sup 7: Comcast income statement

sup 8: Netflix income statement

sup 9: Comcast balance sheet

sup 10: Netflix balance sheet

sup 11: Common sized income statement

supp 12: common-sized balance sheet

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Transcribed Image Text:

A Consolidated Statement of Comprehensive Income - USD ($) $ in Millions Net income Currency translation adjustments, net of deferred taxes of $(331), $(66) and $9 Cash flow hedges: Deferred gains (losses), net of deferred taxes of $26, $(4) and $(3) Dec. 31, 2020 $ 10,701 1,213 12 Months Ended Dec. 31, 2015 $ 13,323 1,375 Dec. 31, 201 $ 11,862 (916) (101) 19 50 Realized (gains) losses reclassified to net income, net of deferred taxes of $31, $(10) and $(4) Employee benefit obligations and other, net of deferred taxes of $20, $16 and $(3) Comprehensive income (147) 65 (6) (68) (57) 8 11,598 14,725 10,998 Less: Net income attributable to noncontrolling interests and redeemable subsidiary preferred O stock 167 266 131 Less: Other comprehensive income (loss) attributable to noncontrolling interests 2 Comprehensive income attributable to Comcast Corporation 60 $ 11,371 (13) $ 14,472 (41) $10,908 1 7 7 B 9 Comcast Cash Flows Netflix SE Comcast SE Netflix Comprehensive Income Comcast Comprehensive Income E A Consolidated Statement of Comprehensive Income - USD ($) $ in Millions Net income Currency translation adjustments, net of deferred taxes of $(331), $(66) and $9 Cash flow hedges: Deferred gains (losses), net of deferred taxes of $26, $(4) and $(3) Dec. 31, 2020 $ 10,701 1,213 12 Months Ended Dec. 31, 2015 $ 13,323 1,375 Dec. 31, 201 $ 11,862 (916) (101) 19 50 Realized (gains) losses reclassified to net income, net of deferred taxes of $31, $(10) and $(4) Employee benefit obligations and other, net of deferred taxes of $20, $16 and $(3) Comprehensive income (147) 65 (6) (68) (57) 8 11,598 14,725 10,998 Less: Net income attributable to noncontrolling interests and redeemable subsidiary preferred O stock 167 266 131 Less: Other comprehensive income (loss) attributable to noncontrolling interests 2 Comprehensive income attributable to Comcast Corporation 60 $ 11,371 (13) $ 14,472 (41) $10,908 1 7 7 B 9 Comcast Cash Flows Netflix SE Comcast SE Netflix Comprehensive Income Comcast Comprehensive Income E

Answer rating: 100% (QA)

1 Netflixs adjustment for accrued expenses and other liabilities of 198183000 reflects the changes in balance sheet items that had an effect on cash flow but were not part of the net income for the pe... View the full answer