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Disney Inc.	2020	2021	Disney Inc.	2020	2021
Cash equivalents	$3,931	$3,421	Total Revenues	45,041	48,813
Account Receivables	6,967	7,822	Cost of Sales	-25,034	-26,420
Inventories	1,487	1,574	Selling & Admin expenses	-8,365	-8,565
Prepaid expenses	1724	2,359	Depreciation expense	-2,406	-2,428
Total Current Assets	$14,109	$15,176	Interest Expense	-304	-31
Net Property Plant	30,012	31,353	Interest income	0	23
Brands, royalty & other operating assets	7,370	7,434	Other non-operating income	688	854
Intangible assets	29,750	30,223	Income before taxes	9,620	12,246
Total Assets	81,241	84,186	Income taxes	-2,984	-4,242
			Net income	6,636	8,004
Notes payables	3,389	3,533
Account payables and accruals	6,803	7,595
Unearned revenues	1,512	2,164
Total current liabilities	11,704	13,292
Long-term debt	12,776	12,676
Other long-term debt	8,611	8,611
Common stock par value + paid in	33,440	33,440
Retained earnings	46,571	48,028
Treasury stock	-34,582	-34,582
Non-controlling interests	2,721	2,721
Total Equity	48,150	49,607
Total liabilities + Total Equity	81,241	84,186

1. Calculate free-cash-flow (FCF) for Disney during 2021 and explain the meaning of your calculated free cash flow to Disney investors (5 points)

2. Calculate the change in cash from operating activities for Disney statement of cash flow during 2021. Assume the depreciation expense during 2021 is stated in its income statement. Explain what it means to Disney shareholders (4.5 points)

3. Suppose in 2022, Disneys Total Revenues is expected to grow at 8% (assume not knowing that the pandemic will occur), using the Additional Fund Needed (AFN) formula calculate Disney AFN to support its 8% growth using its status quo in 2021. And then, given your calculated AFN, suppose that Disney decides to fund all its projected AFN by issuing new Long-Term Debt, calculate the projected Total Liabilities-to-Total Asset ratio for Disney in 2022 and explain the change in its future expected financial leverage. (5 points)

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