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  "documentTitle": "iQIYI, Inc. (IQ)",
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  "notes": "Includes a screenshot of Netflix's Consolidated Statement of Cash Flows to highlight the 'Additions to streaming content assets' line item.",
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      "text": "IQ’s accounting methods are clearly intended to disguise the fact that its business is hemorrhaging cash.",
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      "text": "operating cash flow: -$1.157 billion",
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      "text": "Content licensing and production costs are by far the largest expense for both companies. However, the OCF calculations used by IQ and NFLX are completely different. While Netflix accounts for \"all additions to steaming content assets\" as cash outflows from operating activities, IQ categorizes acquisitions of licensed copyrighted material as cash outflows from investing activities.",
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      "text": "IQ reports three items related to content in its statement of cash flows: amortization of licensed copyrights, amortization and impairment of (self) produced content, and impairment of licensed copyrights.",
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      "text": "We adjusted IQ's 2019 operating cash flow (\"OCF\") down from $561 million to -$1.157 billion by applying accounting methods consistent with others in its industry. IQ's management, analysts and bulls have described the company as \"the Netflix of China.\"",
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      "text": "the Netflix of China — iQIYI management, analysts and bulls.",
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      "text": "88 Netflix, 2018 10-K, pp. 42, 46.",
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      "text": "4. Misleading Financial Reporting Creates the Appearance of a Cash Generative Company",
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