Q1) Reading and Interpreting a Balance Sheet
A recent balance sheet for Walt Disney Company is provided below.
Walt Disney Company
Consolidated Balance Sheet |
(In millions, except per share data)
|
|
|
Sep-30
|
2004
|
2003
|
Assets
|
|
|
Current Assets
|
$2,042
|
$1,583
|
Cash and cash equivalents
|
4,558
|
4,238
|
Receivables
|
775
|
703
|
Inventories
|
484
|
568
|
Television costs(current)
|
1,510
|
1,222
|
Other assets
|
9,369
|
8,314
|
Film and television costs
|
5,938
|
6,205
|
Investments
|
1,292
|
1,849
|
Parks, resorts and other property, at cost
|
|
|
Attractions, buildings and equipment
|
28,147
|
21,472
|
Accumulated deprecation
|
(11665)
|
(8794)
|
|
16,482
|
12,678
|
Intangible assets ,net
|
19,781
|
19,752
|
Other assets
|
1,040
|
1,190
|
Total assets
|
$53,902
|
$49,988
|
Liabilities and Stock holders' Equity
|
|
|
Current Liabilities
|
|
|
Accounts payable and other accured liabilities
|
$5,623
|
$5,044
|
Current portion of borrowings
|
4,093
|
2,457
|
Unearned royalties and other advances
|
1,343
|
1,168
|
Total current liabilities
|
11,059
|
8,669
|
Borrowings
|
9,395
|
10,643
|
Other noncurrent liabilities Minority
|
6,569
|
6,457
|
Minority interests
|
798
|
428
|
Stockholders' Equity
|
|
|
Common Stock
|
12,447
|
12,154
|
Retained earnings
|
15,732
|
13,817
|
Adjustments
|
(2,098)
|
(2,180)
|
Total stockholders' equity
|
26,081
|
23,791
|
Total Liabilities and stockholders' equity
|
$53,902
|
$49,988
|
a. Do you agree that Walt Disney's balance sheet is both classified and comparative? Describe why or why not?
b. At year-end 2004, compute percentage of total assets was composed of current assets? Had this percentage increased or decreased since year-end 2003?
c. What was Disney's amount of working capital at year-end 2004? Did it change significantly?
d. Calculate working capital ratio at year-end 2004 and year-end 2003. Did it improve or deteriorate between 2003 and 2004?
e. Film and television costs are amount paid to make movies or television shows. Describe why it appears in two places on the balance sheet.
f. What were amounts of total assets, total liabilities, and stockholder's equity at year-end 2004 and year-end 2003?
g. Did Disney's overall financial position improve between 2003 and 2004? Describe.