Problem G The Walt Disney Company operatesseveral ranges of products from theme parks and resorts tobroadcasting and other creative content. The following balancesheet and supplementary data are for The Walt Disney Company.
The Walt Disney Company |
Consolidated Balance Sheet (inmillions) |
For Year Ended September 30 |
Assets | | | |
Cash and cash equivalents | | $ 842 | |
Receivables | | 3,599 | |
Inventories | | 702 | |
Film and television costs | | 1,162 | |
Other | | 1,258 | |
Total current assets | | | $ 7,563 |
Film and television costs, prepaid long term | | 5,339 | |
Investments | | 2,270 | |
Attractions, buildings, and equipment | $16,160 | | |
Accumulated depreciation | -6,742 | 9,418 | |
Project in process | | 1,995 | |
Land | | 597 | |
Intangibles assets, net | | 16,117 | |
Other assets | | 1,428 | |
Total Long Term Assets | | | 37,164 |
Total Assets | | | $ 44,727 |
| | | |
Liabilities and stockholders' equity | | | |
Accounts payable and accrued liabilities | | $ 5,161 | |
Current portion of borrowing | | 2,502 | |
Unearned royalties | | 739 | |
Total current liabilities | | | $ 8,402 |
Borrowings | | 6,959 | |
Deferred income taxes | | 2,833 | |
Other long-term liabilities | | 2,377 | |
Minority interest | | 56 | |
Total long term liabilities | | | 12,225 |
| | | |
Common shareholders' equity | | | |
Common shares ($.01 par value, 1,210,000 avg sharesoutstanding) | | 12,100 | |
Retained earnings | | 12,767 | |
Cumulative translation and other adjustments | | (27) | |
Treasury shares | | (740) | |
Total equity | | | 24,100 |
Total liabilities and stockholders' equity | | | $ 44,727 |
Net income, $920.
Income before interest and taxes, $3,231.
Cost of goods sold, $21,321.
Net sales, $25,402.
Calculate the following ratios and show your computations. Forcalculations normally involving averages, such as averagestockholders' equity, average accounts receivable, and averageinventory, use year-end amounts. Disney does not have preferredshareholders or preferred dividends.
Current ratio.
Accounts Receivable
Days Sales Uncollected
Inventory Turnover
Days Sales in Inventory
Debt Ratio
Profit Margin Ratio
Gross Margin Ratio
Return on common stockholder’s equity
Basic Earnings per share
Analyze each of these ratios.
