BUS 500A \ufffd\ufffd\ufffd Accounting Fundamentals Project on: Netflix, Inc.<\/p>\n
Project Overview
\nThe objective of the project is for you to improve your understanding of accounting concepts and become familiar with the contents of a company\ufffd\ufffd\ufffds annual report, Form<\/p>\n
10-K filing with the Securities and Exchange Commission (which is also referred to as an annual report) and a proxy statement for Netflix, Inc. which is a publicly-<\/p>\n
held company. This project involves your preparing written answers to the questions below based on the information provided in these documents. This project is a<\/p>\n
team project. Team members will be required to submit an evaluation on each team member and the dynamics of the team. The written report will be due to the BUS 500A<\/p>\n
Blackboard in parts as scheduled.<\/p>\n
The project is worth 25% of your course grade.<\/p>\n
Selected Company: Netflix, Inc
\nYou may either go to the website for Netflix, Inc or the Securities and Exchange Commission to obtain a copy of the SEC Form 10-K (2015) and the Proxy Statement.<\/p>\n
To access these documents via the company website go Netflix . Select the 10-K for year ending December 31, 2015 and proxy statement (DEF 14A). These documents are<\/p>\n
lengthy, so you decide if you want to print out the hardcopy (which may be easier for you) or just view the documents online (not as easy for viewing but does save you<\/p>\n
paper and ink).<\/p>\n
Report
\nYour report is expected to have a professional appearance as would be expected in most business settings. Presentation is important. Prepare your report in Word,<\/p>\n
using font size 12 and with single line spacing. The first page should be in memo format with three sections: 1) Purpose of this assignment 2) Sources used 3)<\/p>\n
Conclusion \ufffd\ufffd\ufffd What is your opinion of the company; Would you invest in this company?. The format of your report is to follow the outline of the questions included in<\/p>\n
this handout. In your report, state the question or item immediately followed by your answer. To facilitate the instructor\ufffd\ufffd\ufffds review and your class discussion, you<\/p>\n
must cross-reference your answers to the sources used including the document name and the page number.<\/p>\n
Questions
\nInclude in your report the answers to the questions listed below. Also, remember to include the source of your answer, by indicating the document (SEC Form 10-K, and<\/p>\n
Proxy Statement) and page number.<\/p>\n
I. Background information
\na.\tName of Company
\nb.\tFiscal year covered by the annual report:
\nc.\tStock exchange where shares are traded and stock ticker symbol
\nd.\tState of incorporation
\ne.\tDescribe the company\ufffd\ufffd\ufffds business(es), e.g., types of products manufactured.
\nf.\tWhat are the Company\ufffd\ufffd\ufffds major corporate values?
\ng.\tWho are the Company\ufffd\ufffd\ufffds major competitor(s)?<\/p>\n
II. Audit report
\na.\tWho are the company\ufffd\ufffd\ufffds external auditors?
\nb.\tWhat opinion did the auditors issue?
\nc.\tDid the auditors examine all the evidence supporting the amounts and disclosures in all of the financial statements? If not, why not. Explain.
\nd.\tWhat is the auditor\ufffd\ufffd\ufffds responsibility for the financial statements?
\ne.\tWhat is management\ufffd\ufffd\ufffds responsibility?
\nf.\tUnder the Sarbanes-Oxley Act of 2002, reports on internal control are required. Did the company\ufffd\ufffd\ufffds management acknowledge its responsibility for establishing<\/p>\n
and maintaining adequate internal control over financial reporting? What is the auditor\ufffd\ufffd\ufffds opinion on the effectiveness of the company\ufffd\ufffd\ufffds internal controls?<\/p>\n
IV. Assets
\na.\tWhat is the company\ufffd\ufffd\ufffds largest current asset?
\nb.\tWhat items are classified as cash equivalents?
\nc.\tDoes the company distinguish between trade vs. nontrade accounts receivables? If yes, what and how much is their nontrade accounts receivables? If no, how<\/p>\n
much is their trade accounts receivable?
\nd.\tWhat were the balances at year end for Allowance for Doubtful Accounts for trade accounts receivables and for nontrade accounts receivables?
\ne.\tWhat categories of inventory does the company report on its balance sheet? What inventory accounting method(s) does the company utilize?
\nf.\tWhat are the company\ufffd\ufffd\ufffds depreciable assets? What method(s) of depreciation does the company use?
\ng.\tCompute the company\ufffd\ufffd\ufffds Inventory turnover and Day\ufffd\ufffd\ufffds sales in inventory for 2014 and 2015. Comment on the change if any.
\nh.\tWhat kinds of intangible assets does the company have?
\ni.\tHow much goodwill is on the balance sheet and how is it defined?<\/p>\n
V. Liabilities
\na.\tWhat are the company\ufffd\ufffd\ufffds major liabilities?
\nb.\tHow much does the company owe within the next fiscal year?
\nc.\tHow much long-term debt is due and payable? How much of the long-term debt is due within the next fiscal year?
\nd.\tCompute the company\ufffd\ufffd\ufffds Debt ratio for 2014 and 2015 and comments on the change, if any.<\/p>\n
VI. Stockholders\ufffd\ufffd\ufffd equity
\na.\tWhat are the different classes of stock issued by the company?
\nb.\tHow many shares of common stock were issued? What is the par value of the stock?
\nc.\tWhat were the number of shares and cost of the treasury stock held by the company at year-end?
\nd.\tWere cash dividends paid? When? Who makes these decisions?
\ne.\tFor the current period, what does the Statement of Stockholders\ufffd\ufffd\ufffd Equity tell you about Retained Earnings and Treasury Stock?<\/p>\n
VII. Earnings per share
\na.\tWhat is the amount of earnings per share (EPS) being reported?
\nb.\tHave EPS increased since the prior year?
\nc.\tCompute the company\ufffd\ufffd\ufffds Dividend yield for 2014 and 2015 and comment on the change, if any.<\/p>\n
VIII. Business segments
\na.\tHow many business segments does the company have?
\nb.\tWhat are the revenues for the largest business segment?
\nc.\tWhat are revenues for the smallest segment?<\/p>\n
IX. Cash flows
\na.\tHow much cash was provided by operating activities?
\nb.\tWhat major investing activities occurred during the period?
\nc.\tWhat major financing activities occurred during the period?
\nd.\tWhat was the net change in cash during the period?<\/p>\n
X. Proxy statement
\na.\tBriefly describe the issues that the stockholders voted on at the annual meeting of the shareholders.
\nb.\tWhat are the standing committees of the Board of Directors?
\nc.\tHow often are Directors elected and what is their term of office?
\nd.\tWhat were the audit fees charged by the outside audit firm? What were the other non-audit fees?
\ne.\tWhat was the total compensation of the highest paid executive? What was included in the compensation?<\/p>\n","protected":false},"excerpt":{"rendered":"
BUS 500A \ufffd\ufffd\ufffd Accounting Fundamentals Project on: Netflix, Inc. Project Overview The objective of the project is for you to improve your understanding of accounting concepts and become familiar with the contents of a company\ufffd\ufffd\ufffds annual report, Form 10-K filing Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-6964","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/6964","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=6964"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/6964\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=6964"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=6964"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=6964"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}