Analysis for Analysis for Fund Raising-myassignmenthelp.com

Question: Discuss about theAnalysis for Analysis for Fund Raising. Answer: In this report adamantine study has been conducted on financial management functioning of Netflix Company. It is observed that company has raised funds through equity finance and long term finance has been taken from banks and financial institutions. Where and how does the firm get its current financing It is described that Netflix is American Entertainment Company founded by Reed Hasting and Mac in 1997. Company raises its finance by issues of further public offer and taking loans and borrowing from banks and financial institutions. As per the annual report 2016 of Netflix is American Entertainment Company, it is observed that company has decreased its current assets to increase its current financing. In addition to this, company has also capitalized all of earing from licensing and fees in determined approach. Capital work in progress has also reduced by company by selling out leasehold improvement in market to increase overall financing of company (Wu, 2017). In further public offer, Netflix is American Entertainment Company has issued 4,990,000,000 shares in market at $0.001 par value which resulted to availability of finance of 1,599,762. However, company could also increase its overall finance by issue of additional shares to the shareholders as bonus share, right issues and d ividend (Walker, et al. 2017). How Netflix is American Entertainment Company currently raise equity Netflix is American Entertainment Company is an American listed company which is currently raising funds by issue of further public offer. Company has been complying with all the applicable rules and regulation before issues of share in market. Company has followed proper level of corporate governance process to issues shares in market and issued 4,990,000,000 shares in market at $0.001 par value which resulted to availability of finance of 1,599,762 (Needles, Powers and Crosson, 2013). Whether company has loans and debt from the banks and financial institutions Company has streamed content current and non-current obligation in its business functioning which is accompanied by lease and other debts to private persons. However, company has very low level of loans from banks which are booked as overdraft or term loans in the balance sheet of organization. Maturity structure for the debts All the debts raised by company have different lock in period. For instance, lease taken by the company is determined for 12 years. Bonds are issued for the period of 8 years. Loans and advances taken by company is due as per the terms and conditions set by organization with the banks (Zhang, 2016). Types of debts Netflix is American Entertainment Company is having Company has streamed content obligation in its balance sheet which is used to raise finance from the banks and financial institution. However, company has created fixed charge on its assets to raise loan from banks and lease options. However, certain interest rate has been set by company to pay as a cost to deploy funds in value chain activities of organization. References Needles, B., Powers, M. and Crosson, S., 2013.Financial and managerial accounting. Nelson Education. Walker, R., Walker, R., Jeffery, M., Jeffery, M., So, L., So, L., Sriram, S., Sriram, S., Nathanson, J., Nathanson, J. and Ferreira, J., 2017. Netflix Leading with Data: The Emergence of Data-Driven Video.Kellogg School of Management Cases, pp.1-19. Wu, J., 2017.A Study of Earnings Managent Financial Statement Reporting Issues Surroding Public Traded Corporations(Doctoral dissertation, The University of Mississippi). Zhang, S.T., 2016. Firm valuation from customer equity: When does it work and when does it fail?.International Journal of Research in Marketing,33(4), pp.966-970.