Deciphering Financial Statements (The Walt Disney Company)
Locate the 2004 financial statements for The Walt Disney Company on the Internet.
1. Compute a current ratio for Disney as of September 30, 2004. How does this current ratio compare with the prior year’s current ratio?
2. Compute Disney’s asset turnover for 2004.Was the company more or less efficient in
2004 compared to 2003?
3. What method of inventory valuation does Disney use?
4. What method of depreciation does Disney use?
5. What material commitments and contingencies does Disney report in the notes to its 2004 financial statements?
6. What percentage of Disney’s 2004 operating income was generated in the “United States and Canada” geographic segment?