You can review the Disney SEC Form 10-K by searching for “Disney Annual Report” online, and answer the following questions:
a. What is working capital, and what is the trend in Disney’s working capital position in recent years?
b. How much did working capital change as a percentage of total assets over that time period?
c. What happened to Disney’s current ratio over the last year? What accounted for the change?
d. What are the most important current liabilities reported by Disney?
e. Compute Disney’s accounts payable turnover (see Chapter 5) for the past two years. Comment on any change. (Note: The accounts payable as of September 28, 2013, totaled $4,899.)
f. Is Disney concerned with any major contingencies (see note 14)?
g. Briefly describe the unearned royalties account and the basic form of the entry lending to its recognition on the balance sheet.
h. What kind of pension plan does Disney provide for its employees? How much did the company contribute to the plan in the last two years?
i. Compute Disney’s conservatism ratio over the last three years. Comment on whether the company’s financial reporting was conservative or aggressive across the three-year period.