Locate the 2009 financial statements for The Walt Disney Company on the Internet.

1. Did Disney have any below-the-line items in 2009? Explain.

2. Disney's net income decreased from $4,427 million in 2008 to $3,307 million in 2009. Identify the major reasons for the decrease.

3. Imagine that you are a financial analyst asked to generate a forecast of Disney's net income for 2010. You know that generally the best place to start in forecasting next year's net income is this year's net income. Given this starting point, look at the items in Disney's 2009 income statement and make a forecast of 2010 net income.

4. What was Disney's comprehensive income for 2009?

5. Of Disney's four major segments-media networks, parks and resorts, studio entertainment, and consumer products-which generated the most revenue in 2009? The most operating income? Which had the highest operating profit margin (operating income/revenue)?

6. What percent of total revenue does Disney generate within the United States and Canada?

7. How does Disney recognize revenue from broadcast advertising? From advance theme park ticket sales?

8. Does Disney expense its film and television costs using direct matching, systematic and rational allocation, or immediate recognition?

9. How does Disney expense its parks, resorts, and other properties?