Locate the 2007 financial statements for The Walt Disney Company on the Internet. Use the information contained in these statements to answer the following questions:

1. Review The Walt Disney Company’s note disclosure to determine how the company recognizes revenue from its various sources.

2. Based on what you know about Disney, estimate what you think is the length of its average collection period. Once you have made that estimate, use the company’s financial statements to compute the number. How does your estimate compare with the actual results?

3. Review the information relating to Disney’s segment data. Which segment generates the most revenue for the company? Which segment’s revenue grew the most from 2005 to 2007? Which segment generates the most operating income?

4. Using information from the various financial statements, compute the amount of cash collected from customers for the 2007 fiscal year.

5. How does Disney define cash and cash equivalents?