Referring to Disney's income statement
Referring to Disney's income statement and balance sheet calculate 20 financial ratios for 2010 for the company Table 4-6 as a reference.
Disney does not have a mission statement or vision statement.
Finance
Disney’s recent income statements and balance sheets are provided in Exhibits 2 and 3 respectively.
Note the 20 percent increase in net income in 2010 and the $24 billion in goodwill. For the six
months ended April 2, 2011, Disney’s revenues increased 8 percent to $19.793 billion, while the com-
pany’s net income increased 25 percent to $2.244 billion.
EXHIBIT 2 Consolidated Income Statement (in millions, except per share data)
% Change
Better (Worse)
2010 2009 2008 2010
vs.
2009 2009
vs.
2008
Revenues $ 38,063 $ 36,149 $ 37,843 5 % (4)%
Costs and expense (31,337) (30,452) (30,400) (3)% — %
Restructuring and impairment charges (270) (492) (39) 45 % — %
Other income (expense) 140 342 (59) (59)% — %
Net interest expense (409) (466) (524) 12 % 11 %
Equity in the income of investees 440 577 581 (24)% (1)%
Income before income taxes 6,627 5,658 7,402 17 % (24)%
Income taxes (2,314) (2,049) (2,673) (13)% 23 %
Net income 4,313 3,609 4,729 20 % (24)%
Less: Net income attributable to noncontrolling
interest (350) (302) (302) (16)% — %
Net income attributable to The Walt Disney
Company (Disney) $ 3,963 $ 3,307 $ 4,427 20 % (25)%
Earnings per share attributable to Disney
Diluted $ 2.03 $ 1.76 $ 2.28 15 % (23)%
Basic $ 2.07 $ 1.78 $ 2.34 16 % (24)%
Weighted average number of common
equivalent shares outstanding:
Diluted 1,948 1,875 1,948
Basic 1,915 1,856 1,890
Source: Walt Disney Company, Annual Report (2010).
EXHIBIT 3 Consolidated Balance Sheets (in millions, except per share data)
October 2,
2010 October 3,
2009
ASSETS
Current assets
Cash and cash equivalents $ 2,722 $ 3,417
Receivables 5,784 4,854
Inventories 1,442 1,271
Television costs 678 631
Deferred income taxes 1,018 1,140
Other current assets 581 576
Total current assets 12,225 11,889
Film and television costs 4,773 5,125
Investments 2,513 2,554
Parks resorts mid other property, at cost
October 2,
2010 October 3,
2009
Attractions, buildings and equipment 32,875 32,475
Accumulated depreciation (18,373) (17,395)
14,502 15,080
Projects in progress 2,180 1,350
Land 1,124 1,167
17,806 17,597
Intangible assets, net 5,081 2,247
Goodwill 24,100 21,683
Other assets 2,708 2,022
Total assets $ 69,206 $ 63,117
LIABILITIES
Current liabilities
Accounts payable and other accrued liabilities $ 6,109 $ 5,616
Current portion of borrowings 2,350 1,206
Unearned royalties and other advances 2,541 2,112
Total current liabilities 11,000 8,934
Borrowings 10,130 11,495
Deferred income taxes 2,630 1,819
Other long-term liabilities 6,104 5,444
Commitments and contingencies 1,823 1,692
Total liabilities 31,687 29,383
EQUITY
Preferred stock $.01 par value
Authorized—100 million shares, Issued—none — —
Common stock $.01 par value
Authorized—4.6 billion shares at October 2, 2010 and 3.6 billion
shares at October 3, 2009
Issued—2.7 billion shares at October 2, 2010 and 2.6 billion
shares at October 3 2009 28,736 27,038
Retained earnings 34,327 31,033
Accumulated other comprehensive loss (l,881) (1,644)
61,182 56,427
Treasury stock, at cost, 803.1 million shares at October 2, 2010
and 781.7 million shares at October 3, 2009 (23,663) (22,693)
Total Shareholders’ equity 37,519 33,734
Total liabilities and equity $ 69,206 $ 63,117
13 years ago
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