Reference no: EM133094947

Question: JetBlue Airways Corporation 12 Months Ended Consolidated Income Statement (attached)

Presented below are SWOT analyses for Netflix and JetBlue prepared as of December 7, 2021,and sourced from D&B Hoovers. SWOT is a familiar acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. Strengths and Weaknesses describe conditions internal to the organization. Opportunities and Threats are terms used to describe the external environment within which the organizations operate. Not surprisingly, COVID-19 is identified as a threatfor JetBlue but not for Netflix. Netflix, Inc. JetBlue Airways Corporation Strengths Financial Performance Market Presence and Customer Base Geographic Network Aircraft Fleet Base Route Network Cash Position Weaknesses Lawsuits Operating Performance Opportunities Media and Entertainment Industry: the U.S. Business Expansions Growth Strategies for achieving Market Synergies Positive Outlook for US T&T Industry New Aircrafts Growth Initiatives Threats Dependence on Third-party Vendors Security Issues Oscillating Regulations and Laws Coronavirus (COVID-19) Outbreak Regulations Pilot Shortage (Dun & Bradstreet, Inc., 2021)

Required: Financial data forJetBlue are provided in the accompanying Excel Spreadsheet prepared for this Module Submission. Over the threeyears included in the ExcelSpreadsheet, sales and gross margin for JetBlue have changed dramatically due to travelbans and othersecondary effects of the COVID- 19 pandemic.

4.1 To approximate the drop in revenue fromDecember 31, 2019,to December 31, 2020, that is associated withthe impact of COVID-19, expressthe change in revenue from fiscal year2019 to fiscalyear 2020 as a percentage of the revenuereported for the year endedDecember 31, 2019. Include "Other revenue"in the calculation. Round percentage to 1 decimalplace.

4.2 Faced witha dramatic dropin revenue in fiscal year2020, JetBlue wouldbe expected to focus on cost containment. Costs that cannotbe reduced by more than20% during a period when there is a much greaterdecline in revenueare considered to be coststhat are classified as "semi- fixed costs in the short run." Using this classification, which of the "costs and expenses" reportedby JetBluein fiscal-year 2020 would be classified as "semi-fixed in the short run"?

4.3 "Aircraft fueland related taxes"is an expense that is likely to be a variable costand vary directly as a functionof revenue. Was the management of JetBlue successful in employing the practice of flexiblebudgeting to reducethe expense for "aircraft fuel and relatedtaxes" in fiscal-year 2020 to a level thatshould be expected for a costthat is a variable cost?Include the necessary numerical calculations needed to support your response.

4.4 When faced with a devasting financial crisis, "running outof cash" is a shortroute to bankruptcy and financial failure. A company thathas no cashcannot pay operating costs and meetfinancial obligations. For JetBlue,the balances in cash and current investments in marketable securities reported as of December 31, 2020, are significantly greater than in previous years. On first consideration, thisincrease appears to be contraindicated; a company experiencing a devasting financial crisis shouldn''t be expected to report a significant increase in cash. Thesuccess of the leadership of JetBlue in being resourceful and responding to a loomingcash crisis by shoring up their cash position is reflected in the Dunnand Bradstreet SWOTanalysis, which lists"Cash Position" as one of JetBlue''s strengths.

4.4.A How much of the increase in cash during fiscal-year 2020 is the result of financing activities?

4.4.B How much of the increase in cash during fiscal-year 2020 is the result of operating activities? Explain.

Attachment:- Consolidated Income Statement.rar