Deciphering Financial Statements (The Walt Disney Company)
Locate Disney’s financial statements and related notes on the Internet and answer the following questions:
1. Locate Disney’s note that discusses investments. What amount of the investment portfolio is classified as available for sale? Now look at Disney’s balance sheet. What percentage of the total investment account is available for sale securities? What types of securities constitute the balance in that account?
2. Locate Disney’s note that discusses what types of securities are included in “Investments” on the balance sheet. Also examine the note that defines cash and cash equivalents. Are all of Disney’s investment securities listed under Investments in the balance sheet?
3. Review the note on financial instruments to determine how the carrying value of investments compared to the fair value on September 30, 2004. Why is this number so much less than that reported as Investments on the balance sheet?