Problem G The Walt Disney Company operates several ranges of products from theme
ID: 2402542 • Letter: P
Question
Problem G The Walt Disney Company operates several ranges of products from theme parks and resorts to broadcasting and other creative content. The following balance sheet and supplementary data are for The Walt Disney Company.
The Walt Disney Company
Consolidated Balance Sheet (in millions)
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 shares outstanding)
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. For calculations normally involving averages, such as average stockholders' equity, average accounts receivable, and average inventory, use year-end amounts. Disney does not have preferred shareholders 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.
The Walt Disney Company
Consolidated Balance Sheet (in millions)
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 shares outstanding)
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
Explanation / Answer
Solution:
1)
Current Ratio
Total Current Assets (A)
$7,563
Total Current Liabilities (B)
$8,402
Current Ratio (A/B)
0.90
2)
Accounts Receivable Turnover
Net Credit Sales (A)
$25,402
Avg Accounts Receivable (B)
$3,599
Accounts Receivable Turnover (A/B)
7.06
3)
Days Sales Uncollected
Number of Days in a year
365 Days (assumed)
Accounts Receivable Turnover Ratio
7.06
Days Sales Uncollected (365 days / 7.06)
51.70
4)
Inventory Turnover
Cost of Goods Sold (A)
$21,321
Average Inventories (B)
$702
Inventory Turnover (A/B)
30.37
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Pls ask separate question for remaining parts
1)
Current Ratio
Total Current Assets (A)
$7,563
Total Current Liabilities (B)
$8,402
Current Ratio (A/B)
0.90
2)
Accounts Receivable Turnover
Net Credit Sales (A)
$25,402
Avg Accounts Receivable (B)
$3,599
Accounts Receivable Turnover (A/B)
7.06
3)
Days Sales Uncollected
Number of Days in a year
365 Days (assumed)
Accounts Receivable Turnover Ratio
7.06
Days Sales Uncollected (365 days / 7.06)
51.70
4)
Inventory Turnover
Cost of Goods Sold (A)
$21,321
Average Inventories (B)
$702
Inventory Turnover (A/B)
30.37
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.