Week 1 Financial Statement review Walt Disney World
University of Phoenix Material
Financial Statement Review – Walt Disney World
What is the net income for the current fiscal year? Is it up or down from the prior year? Why would this information be important to investors?
As of June 28, 2014 net income is $2,245 Millions compared to June 29, 2013 when net income was $1,847 Millions. Net income increased by $398 Millions
Net income provides information regarding the company’s bottom line. If the company is profitable each year investors are likely to invest in the company.
What is the ending balance in stockholders’ equity? Why would a labor union potentially be interested in this information?
Ending balance of stockholders equity was $45,520 Millions. Labor unions are interested in company’s stockholders equity as they may suggest to management that dividends paid to investors should be reduced and an increase to employee benefits and negotiate contracts with employees.
What is the total value of assets? Why would this information be important to a potential creditor?
Total assets are $83, 723 Millions
Total assets including international theme parks are $80,424 Millions.
Creditors are interested in the company’s assets because it shows the company has the means to pay off or keep up with debt. Banks are interested if the company has something of value to concert to cash to pay down debts if it gets to that point. If the company is interested in obtaining a loan or more credit from a bank the total value of assets shows that the company is willing to risk assets.
What is the total cash flow from operation?
Total cash flow was $6,675 Millions from operation
What financial statement user would find this information most important?
Management and investors would use the statement of cash flows to determine the company’s financial health over a period of time. The users of these statements find the cash flow statement to be informative as it cannot be manipulated, such as net income.
Reference
Financial Statement Review – Walt Disney World
What is the net income for the current fiscal year? Is it up or down from the prior year? Why would this information be important to investors?
As of June 28, 2014 net income is $2,245 Millions compared to June 29, 2013 when net income was $1,847 Millions. Net income increased by $398 Millions
Net income provides information regarding the company’s bottom line. If the company is profitable each year investors are likely to invest in the company.
What is the ending balance in stockholders’ equity? Why would a labor union potentially be interested in this information?
Ending balance of stockholders equity was $45,520 Millions. Labor unions are interested in company’s stockholders equity as they may suggest to management that dividends paid to investors should be reduced and an increase to employee benefits and negotiate contracts with employees.
What is the total value of assets? Why would this information be important to a potential creditor?
Total assets are $83, 723 Millions
Total assets including international theme parks are $80,424 Millions.
Creditors are interested in the company’s assets because it shows the company has the means to pay off or keep up with debt. Banks are interested if the company has something of value to concert to cash to pay down debts if it gets to that point. If the company is interested in obtaining a loan or more credit from a bank the total value of assets shows that the company is willing to risk assets.
What is the total cash flow from operation?
Total cash flow was $6,675 Millions from operation
What financial statement user would find this information most important?
Management and investors would use the statement of cash flows to determine the company’s financial health over a period of time. The users of these statements find the cash flow statement to be informative as it cannot be manipulated, such as net income.
Reference