Reference no: EM132659633
The following information was taken from the Netflix financial statements. NETFLIX, INC. Consolidated Statement of Operations For the Years 2014, 2015, and 2016
Dec. 31, 2014 Dec. 31, 2015 Dec. 31, 2016
Sales $5,504,656 $6,779,511 $8,830,669
Dollar values are in thousands of US dollars. Source: United States Security and Exchange Commission. "Netflix, Inc. Consolidated Statements of Operations." For Netflix, sales is the product of the number of subscribers and the price charged for each subscription.
Question 1: What observations can you make about the previous three years of Netflix's sales?
Question 2: Given this data, provide any predictions you can make about the future financial performance of Netflix. What nonfinancial factors influenced that prediction?