Walt Disney Company Finance and Accounting Project   Term Paper ID:42887 Click to get this paper

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Paper Abstract: This is a project based on Walt Disney Company concerning some very basic measures of corporate performance and reporting. It is not intended as a balanced investment opinion on the security. Paper Introduction: Running head FINANCE ACCOUNTING DISNEYWalt Disney CompanyFinance and Accounting ProjectYour NameYour UniversityWalt Disney CompanyFinancial and Accounting ProjectCompany BackgroundWalt Disney Company NYSE DIS is a diversified global entertainmentcompany It has some securities listed on the Luxembourg exchange inaddition to the common listed on the NYSE It is a cinema productioncompany that has diversified into various media including television radio cable and Internet operations The parks and resorts operationsinclude theme parks in Florida California France Hong Kong and Japan The movie studio create and Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. Briefly explain the factors thatare influencing the demand for products and services of this company.There is little relevant news about Disney recently. The consumer products division licenses Disney Characters andproduces a variety of Disney related books and other products. Disney is probably not a stock thatshould be at the top of any investor's buy list.B. The parks and resorts operationsinclude theme parks in Florida, California, France, Hong Kong, and Japan.The movie studio create and distribution cinema, television content andrecordings. The theme parks do notseem to be doing well in recent months because they are currently offeringdiscounts and full-week passes for the price of four days. Calculate the gross margin percentage (Gross Profit divided by NetSales) for each period presented in the income statement. (DIS). There is littlequestion that the Internet has already impacted the entertainment and newsbusiness and things like Apple's iTunes will be very important factors inthe music and entertainment business.Understanding the Annual Report and 1 K1. It wasfounded in 1932 by Walt Disney as an animated cartoon production company.Read the auditor's report included in the annual report of the company andexplain its purpose. That is the $4.5 billion increase in treasury stock. No other details on depreciation policies are detailed in thenotes to the financial statements.5. The 1 K provides important information to the stockholders and others.Briefly explain the nature of the information contained in this statement.The auditor's statement simply says that it has looked at the books andreporting of the company and finds no glaring evidence of wrongdoing. Thebreakdown of the asset side of the balance sheet for the years 2 7 and2 8 is presented in the appendix as Disney Asset Allocations. This measure is not relevantfor Disney.6. If so, brieflyexplain the cause(s) for the change.The only element of interest in the equity section of the balance sheet isthe increase in treasury shares referenced in question 6.8. Comment briefly on thetrend observed.Inventories are negligible in the Disney picture. Provide a breakdown of the liabilities of the company in percentageterms (i.e., what percentage of the total liabilities of the company arecurrent liabilities, long-term liabilities, etc.)?There is effectively one interesting element in the comparison of the years2 7 and 2 8 included in the Appendix as Disney Asset/LiabilityAllocations. What earningstrend do you observe and what factors may be causing this trend?The financial performance of Disney is presented in the table in theappendix Disney Historic Earnings. Is the demand for the products and services provided by this companyincreasing, decreasing, or staying stable? It has even been possible to maintain EPS at themagic 5% that will produce a double every 5 years while actual financialearnings growth has about half a percent less than EPS.2. The price as this is being written on 2/23/2 9 is $17.13. Where are the resources of your company employed (i.e., what percentageof the total assets of the company are invested in current assets, long-term assets etc.)?The largest single asset category is Goodwill, at 35%, followed by the netvalue of parks and resorts, at just under 25%. This changes all thetime. RetrievedFebruary 23, 2 9, fromhttp://finance.yahoo.com/q/hp?s=DIS&d=1&e=23&f=2 9&g=d&a= &b=2&c=1962&z=66&y=66 Appendix-----------------------[pic][pic][pic][pic] Does the companyuse the same method of depreciation for all types of long-lived assets?Capitalized software costs are amortized on a straight-line basis over theestimated useful life of the software, ranging from 3-1 years. What method(s) does your company use to value its inventory? It doesdescribe the accounting of the company as generally complying with acceptedstandards. If thenet income does not rise, the solution to increasing EPS is to reduce thenumber of share it is divided by. Identify and briefly explain significant events (technologicalbreakthroughs, regulatory changes) that may have affected the companyrecently.The primary question for any media network or entertainment company is howthe development of the Internet over the next decade will affect theiroperations. Gross or operating marginrose in 2 7 by 597 basis points and slipped by 219 basis points in thefollowing year. Identify the major competitors of thecompany.The company makes, purchases, and distributes films, televisionprogramming, and music. It operates one of the largest broadcast medianetwork operations in the world, and it creates and distributes consumerproducts. [For example, if earnings in Year 1 and 2 are 1 and 125respectively, the growth rate from Year 1 to Year 2 is 25%]. Did thestockholders' equity change significantly during the year? How does current year's net income (i.e., earnings) compare with that inprevious years? Based on its record of accomplishment, Disney islikely to be one of the companies that find a way to benefit from the Net,but this is speculation as opposed to rational analysis. Ina recession, advertising expenditures are likely to be cut back and thelonger-term outlook will depend in large part on the relationship betweennetwork and Internet businesses. What trend ingross margin do you observe and what factors may be causing this trend?The table presented in the Appendix as Disney Margins details the marginperformance of Disney for the years 2 6-2 8. It has some securities listed on the Luxembourg exchange inaddition to the common listed on the NYSE. Over time, it has evolved from a quality assurance tool to ahold harmless statement by the auditors.ReferencesYahoo Finance. Running head: FINANCE/ACCOUNTING DISNEYWalt Disney CompanyFinance and Accounting ProjectYour NameYour UniversityWalt Disney CompanyFinancial and Accounting ProjectCompany BackgroundWalt Disney Company (NYSE DIS) is a diversified global entertainmentcompany. It will probably be a great opportunity for some and adisaster for others. It states that they havereviewed the company's financial statements, conducted any auditing test orinspections they considered necessary and based on this they believe thatthe financial statements as presented reflect accurately and fairly asummary of the operations of the company and the financial condition of thecompany.Briefly explain the major operations of your company. In each of these areas, it has competitors. The yearover years changes are insignificant.4. Others include CKX, BaylordEntertainment, CBS, and KIT digital Inc.Using the Wall Street Journal or Internet to record the closing price onFriday (October 31, 2 8).The closing price on the NYSE on 1 /31/2 8 was $29.51 (Yahoo Finance2 9). (2 9, February 23). What method(s) of depreciation does your company use? This is the key element in the financialengineering referred to in the first question in this set about earnings.7. Developments relating to the CompanyA. What products does itsell and/or services does it render? Itgoes on to say that the company controls dissemination of information andthat the auditors cannot be held responsible for errors or misstatementsresulting from actions of the company accidental or intentional. Thequestion here is not organic growth of the operations at much more than theinflation rate. It is restructuringits theme parks operation and laying-off employees. Net income has grown because of "increased efficiency" andfinancial engineering. Compute theinventory turnover ratio for the last three years. Identify the major components of stockholders' equity. Current Assets make upslightly more than 18%, with about a quarter of this in cash. Studio entertainment was largely responsible for thestrong performance in 2 7 and ongoing gains in media networks are the keyto sustained overall growth.3. While revenue growth has been modest at4.6% compound, reported earnings have grown at 14.8% and EPS at 15.3%. Walt Disney Co. Theentertainment business is built on deferrable purchases, and the worsteconomic downturn in the past century will hardly be a good period foranyone, especially if the purchases are deferrable.The movie business historically has been volatile and dominated by theresults from a blockbuster film or a box office bust. Compute the annual growth rate in earnings for the lastfive years. In the networkarea, one major competitor is Time Warner, which is also in the filmproduction and distribution business. The outlook for the network business is questionable long term. In 2 8, they were$1.124 billion or about 1.8% of assets and turned over at a rate of about33 times per year compared to total revenue. Park andresort assets are amortized on a straight-line basis on their estimateduseful lives. Identify the name of the auditing firm.The auditing firm is Price Waterhouse Coopers. It is a cinema productioncompany that has diversified into various media, including television,radio, cable, and Internet operations. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.