Accounting|Quick homework help

Posted: February 20th, 2023

knowing how to work with the numbers in a company’s financial statements is an essential skill for financial managers. In this part of the course project assignment, explain the Disney’s financial statements

SOLUTION

Walt Disney Company is a diversified global entertainment company that operates in four primary business segments: media networks, parks and resorts, studio entertainment, and consumer products & interactive media. To get an overall idea of the company’s financial performance, we can take a look at its income statement, balance sheet, and cash flow statement.

1. Income Statement:

The income statement, also known as the profit and loss statement, provides a summary of a company’s revenues, expenses, and net income (or loss) for a particular period. Here’s a summary of Disney’s income statement for the fiscal year 2021 (ended October 2, 2021):

• Total revenues: $65.4 billion
• Cost of revenues: $28.6 billion
• Gross profit: $36.8 billion
• Operating expenses: $22.7 billion
• Operating income: $14.1 billion
• Net income: $6.9 billion

2. Balance Sheet:

The balance sheet provides a snapshot of a company’s assets, liabilities, and equity at a particular point in time. Here’s a summary of Disney’s balance sheet as of October 2, 2021:

• Total assets: $201.5 billion
• Total liabilities: $92.4 billion
• Total equity: $109.1 billion

3. Cash Flow Statement:

The cash flow statement shows how a company generates and uses cash during a particular period. Here’s a summary of Disney’s cash flow statement for the fiscal year 2021: