Cash Flows at Disney The following cash flows were reported by The Walt Disney Company and Subsidiaries for 1998 (stated in millions):

. Did Disney’s cash position increase or decrease during 1998? By what amount?
. Is Disney’s reported net income a good measure of total cash provided by operations in 1998? What proportion of total cash provided by operations does it represent?

. What proportion of the adjustments to net income used in computing cash provided by operations is represented by depreciation and amortization?
Did Disney’s additional investment in film and television and theme parks, resorts, and other property exceed depreciation and amortization for the year? By what amount?
. What portion of the amount invested in film and television and theme parks, resorts, and other property was generated by issuing new long-term debt and common stock?
. How does the information on cash provided (used) by investing activities and financing activities help investors to evaluate a company such as Disney?

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Net Income $1,850 Items Not Requiring Cash Outlays: Amortization of film and television costs 2,514 Depreciation 809 Amortization of intangible assets 431 Other (75) Changes In: Receivables (664) Inventories (46) Other assets liabilities 179 rights Accounts and taxes payable and accrued Film and television costs-television broadcast Deferred income taxes 218 (447) 346 3,265 5,115 Cash Provided by Operations Investing Activities: Film and television costs (3,335) Investments in theme parks, resorts, and other property (2,314) Acquisitions Proceeds from sales of marketable securities and other investments Purchase of marketable securities Investment in and loan to E! Entertainment (213) 238 (13) (28) (5,665)