Accounting Research Project: Walt Disney

2012 Acc Research Project The Walt Disney fede balancen pump Symbol NYSEDIS A outline summary of the partys products, history, and financial trading operations all over the last family. ecumenical Overview The Walt Disney go with (NYSEDIS) is superstarness that I drive been familiar with my entire life. However, I prevail never known much more or less the logical argument side of the order.It was founded in 1923 by Roy and Walt Disney, who came to Hollywood from Kansas City, Missouri. Walt and Roy produced a short animate characterization series that became known as the Alice Comedies. The small studio in which they worked was outgrown and replaced by a larger facility, where they became Disney Bros. Studio (Disney Archives). In 1928, Mickey Mouse was born, followed by Pluto, Goofy, and the sculptural relief of the Disney gang, and the Disney Brothers Studio became the Walt Disney Studio. Disneys first whole animated picture palace came out in 1937.Snow Whi te and the Seven Dwarfs became the highest grossing film by 1939 and the first animated give film ever produced (studioservices. go. com). During creation War II, end product was slow, and Disney was contracted into creating propaganda films to endorse the war and cost growth morale on the home front. However, in 1950, Cinderella revived the lodge and the Walt Disney Productions theme super acid innovation was set in motion, initiative Disneyland in 1955. Walt Disney died in 1966 of lung cancer (age 66), and his associate Roy took over as chairman, chief executive officer and president.The Walt Disney World Resort opened in Orlando, Florida in 1971, and Disney began to afford its way into live-action films. Since then, the Walt Disney Company has do its name in the family and entertainment business, fit angiotensin-converting enzyme of the largest and most influential companies worldwide, owning markets in China, lacquer, North America, Europe, Africa, the Middle Eas t, Australia, and Russia. The ships company home office is located in Burbank, California, headed by chair and CEO Bob Iger, who ook over the company in 2005 and acquired other such productions as Pixar (2006), Marvel Entertainment (2009), and Lucasfilm (2012) (thewaltdisneycompany. com). As surface as owning several media ne tworks, hotels and resorts, Disney Consumer Products, according to the companys website, is the business segment of The Walt Disney Company and its affiliates that extends the Disney brand to merchandise ranging from app bel, toys, home decor and books and magazines to foods and beverages, stationary, electronics and fine art.This is accomplished through a franchise-based licensing organization focused on strategical brand priorities, includingDisney Classic Characters & Disney Baby Disney belong Action Film Disney Media Networks & Games, Disney & Pixar Animation Studios Disney Princess & Disney FairiesandMarvel. otherwise businesses involved in Disneys consumer products sales are Disney Publishing Worldwide, the worlds largest publisher of childrens books and magazines, andwww. DisneyStore. omandwww. DisneyStore. co. uk, the companys official obtain portals. The Disney Store retail chain, which debuted in 1987, is possess and operated by Disney in North America, Europe, and Japan (thewaltdisneycompany. com). In in the altogether-made news, Netflix announced on declivityember 4, 2012 that it has signed a multi- class mussiness with The Walt Disney Company. gibe to the article by Ramon Aranda, this allow for give Netflix the exclusive rights to run feature films available for users to watch instantly.Ted Sarandos, Chief nitty-gritty Officer at Netflix said, Disney and Netflix have plowshared a long and mutually right relationship and this deal will cultivate to our subscribers, in the first correct TV window, some of the highest-quality, most imaginative family films macrocosm made today Its a bold leap forward for meshing television and we are incredibly delightful and proud this iconic family brand is teaming with Netflix to make it happen. The article also states that the financial hurt of this agreement have not been dis nigh(a)d.Another late event for the company was the purchase of the wind Wars franchise Lucasfilm for four billion dollars at the end of October. 100 impute own by founder George Lucas, an article in USA Today says Disney received the imperium at a cost of $4 billion, 40 million Disney shares, and a year and half pursuit. This amount of shares makes Lucas the companys second largest non-institutional shareholder of Disney, later on the imprecate of Steve Jobs (Krantz, Matt, et. al). The article goes on to note that this deals tag Disneys fourth largest deal ever, after Capital Cities/ABC (1995), Pixar (2006), and Fox Family (2001).Disney plans to expound on the sense experience Wars film schedule. CEO Bob Iger said, our long term plan is to release a new Star W ars feature film every two to three years, beginning with Episode heptad hopefully releasing in 2015. George Lucas will serve as a fanciful consultant, but plans to retire, saying, For the past 35 years, one of my greatest pleasures has been to seeStar Wars sneak outed from one generation to the next. Its now time for me to pass Star Wars on to a new generation of filmmakers (Krantz, Matt, et. al).The received price per share of the companys common cable is $48. 67. This reduce has fluctuated a bit over the last year, but has remained mostly close to the recent price. The lowest price over the last year has been $34. 52, with the highest price at $53. 40 (thewaltdisneycompany. com). Financial Status (2012) tally the companys most recent accounting statements (2012 fiscal year), get assets equaled $74,898 come in liabilities equaled $32,940, and the total equity for the year be $41,958 (in millions). $74,898 = $32,940 + $41,958The company earned a wampum income of $5. 682 b illion, an eighteen portion increase from the prior year. The earnings per share during the year 2012 change magnitude 24 percentage to $3. 13 from $2. 52 the prior year. Earnings per share is key because it is a measure of a companys profitability. It is one of the most intimately watched financial ratios in the business world. The revenues for The Walt Disney Company totaled $42. 278 billion, a 4 percent increase from the previous year. Two of Disneys competitors, intelligence information Corp. and Time Warner Inc. have revenues that slide by significantly lower than this corporate giant, with News Corp. revenues totaling $33. 88 billion and Time Warner Inc. at $28. 76 billion. Disneys current assets total $13. 709 billion, with current liabilities totaling $12. 813 billion. The current ratio 13. 709/12. 813 = 1. 07. The current ratio generally shows the ability of a company to pay back debts. However, if a company is good at managing and planning interchange flows, a lo w number does not necessarily mean they cannot pay back its debts on time.This number has diminish compared to the previous year, which had a current ratio of 1. 13. Disneys long-term assets include film and television costs, investments, parks, resorts, and other properties (attractions, buildings, and equipment), projects in progress, land, nonphysical assets, and goodwill 82 percent of Disneys assets are long-term. Compared to prior periods, these assets have increase (approximately $2 billion more than 2011). In addition, The Walt Disney Company heads depreciation using the straight-line method.The long-term liabilities of The Walt Disney Company total $20. 127 billion, or 61 percent of the total liabilities, compared to 63 percent of total liabilities in 2011. Disney has over one trillion shares in circulation currently, both of prefer stock and common stock outstanding. The company saw an increase in cash and cash equivalents of $202 million, giving Disney an end of year balance of $3. 387 billion, compared to the $3. 185 billion from the previous year. According to Disneys report, cash provided by operations increased 14 percent compared to 2011.The increase in cash provided by operations was due to higher segment operate results and the timing of and improved receivable collections, partially offset by higher income revenue payments, the payment of interest accrued in prior years on Disneyland genus Paris borrowings, and higher film production outgo (thewaltdisneycompany. com). Disney uses the reasonable-cost method in order to calculate inventory, stating, Inventory primarily includes pass timeshare units, merchandise, materials, and supplies.Carrying amounts of vacation ownership units are put down at the lower of cost or last-place realizable value. Carrying amounts of merchandise, materials, and supplies inventories are generally dictated on a moving average cost basis and are recorded at the lower of cost or market. Only a small port ion of the total assets is represented by inventory. In 2012, the inventory only accounted for 2 percent of the companys total assets, which is reproducible with the 2 percent of total assets in 2011. Work Cited A History of The Walt Disney Company. Disney 23. Web. 12 Dec. 2012. http//d23. disney. go. com/archives/a-history-of-the-walt-disney-company/ Aranda, Ramon. Netflix Announces Multi-Year Agreement with The Walt Disney Company. examiner. com(2012) n. pag. Web. 13 Dec 2012. http//www. examiner. com/article/netflix-announces-multi-year-agreement-with-the-walt-disney-company. Disney Studio Services. The Walt Disney Studios History. Web. 12 Dec. 2012. http//studioservices. go. om/disneystudios/history. hypertext mark-up language Krantz, Matt, Mike Snider, Marco Della Cava, and Bryan Alexander. Disney buys Lucasfilm for $4 billion. USA Today. 30 2012 n. page. Web. 16 Dec. 2012. http//www. usatoday. com/story/money/business/2012/10/30/disney-star-wars-lucasfilm/1669739/. The Wal t Disney Company. Annual cover The Walt Disney Company Reports Fourth Quarter and large Year Earnings for Fiscal 2012. Burbank The Walt Disney Company, 2012. 15 Dec. 2012. http//thewaltdisneycompany. com/