1. Using the Disney financial statements, calculate the variance for the balances listed below (some are clearly stated and some you might have to calculate). The answer must include:

% change from 2017 to 2018 $ change from 2017 to 2018 you must state whether it is a favorable or unfavorable variance from 2017 to 2018

Cost of services

Selling, general, administration and other

Gross Profit of services

Gross Profit of products

ITEM 6. Selected Financial Data (in millions, except per share data) 2018 (1) 2017 2016) 2015 2014 (5) $ $ $ $ 59,434 13,066 12,598 55,137 9,366 8,980 55,632 9,790 9,391 52,465 8,852 8,382 48,813 8,004 7,501 $ $ $ $ 8.36 8.40 1.68 5.69 5.73 1.56 5.73 5.76 1.42 4.90 4.95 1.81 4.26 4.31 0.86 Statements of income Revenues Net income Net income attributable to Disney Per common share Earnings attributable to Disney Diluted Basic Dividends (6) Balance sheets Total assets Long-term obligations Disney shareholders' equity Statements of cash flows Cash provided (used) by: Operating activities Investing activities Financing activities $ $ $ $ 98,598 24,797 48,773 95,789 26,710 41,315 92,033 24,189 43,265 88,182 19,142 44,525 84,141 18,573 44,958 $ $ $ $ $ 14,295 (5,336) (8,843) 12,343 (4,111) (8,959) 13,136 (5,758) (7,220) 11,385 (4,245) (5,801) 10,148 (3,345) (6,981) CONSOLIDATED BALANCE SHEETS (in millions, except per share data) September 29, 2018 September 30, 2017 $ 4,017 8,633 1,373 1,278 ASSETS Current assets Cash and cash equivalents Receivables Inventories Television costs and advances Other current assets Total current assets Film and television costs Investments Parks, resorts and other property Attractions, buildings and equipment Accumulated depreciation 4,150 9,334 1,392 1,314 635 16,825 7,888 2,899 588 15,889 7,481 3,202 Projects in progress Land 55,238 (30,764) 24,474 3,942 1.124 29.540 6,812 31,269 3,365 98.598 54,043 (29,037) 25,006 2,145 1,255 28,406 6,995 31,426 2,390 95,789 S $ $ 9,479 3,790 591 Intangible assets, net Goodwill Other assets Total assets LIABILITIES AND EQUITY Current liabilities Accounts payable and other accrued liabilities Current portion of borrowings Deferred revenue and other Total current liabilities Borrowings Deferred income taxes Other long-term liabilities Commitments and contingencies (Note 14) Redeemable noncontrolling interests Equity Preferred stock Common stock, $.01 par value, Authorized - 4.6 billion shares, Issued-2.9 billion shares Retained earnings Accumulated other comprehensive loss 17,860 17,084 3,109 6,590 8,855 6,172 4,568 19,595 19,119 4,480 6,443 1,123 1,148 36,779 82,679 (3,097) 116,361 (67,588) 48,773 4.059 Treasury stock, at cost, 1.4 billion shares Total Disney Shareholders' cquity Noncontrolling interests Total equity Total liabilities and equity 36,248 72,606 (3,528) 105,326 (64,011) 41,315 3,689 45,004 95,789 52.832 98,598 See Notes to Consolidated Financial Statements CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) 2018 2017 9,366 2016 9,790 Net Income $ 13,066 $ $ Other comprehensive income/loss), net of tax: Market value adjustments for investments 13 Market value adjustments for hedges (37) (359) Pension and postretirement medical plan adjustments 584 (1,154) Foreign currency translation and other (289) (103) (156) Other comprehensive income/(loss) 359 426 (1,656) Comprehensive income 13,425 9,792 8,134 Net income attributable to noncontrolling interests, including redeemable noncontrolling interests (468) (386) (399) Other comprehensive loss attributable to noncontrolling interests 98 Comprehensive income attributable to Disney $ 13,029 $ 9,431 $ 7,833 See Notes to Consolidated Financial Statements CONSOLIDATED STATEMENTS OF INCOME in millions, except per share data) 2018 20 2017 2016 Revenues: Services 50,869 $ 46,843 $ 47,130 Products 8,565 8.294 8,502 Total revenues 59,434 55,137 55,632 Costs and expenses: (24,653) Cost of services (exclusive of depreciation and amortization) Cost of products (exclusive of depreciation and amortization) Selling, general, administrative and other (27,528) (5,198) (8,860) (5,340) (25,320) (4,986) (8,176) (2,782) (41,264) (98) Depreciation and amortization (3,011) (8,754) (2,527) (41,274) (156) Total costs and expenses Restructuring and impairment charges (44,597) (33) 601 Other income, net 78 Interest expense, net (574) (385) (260) 926 Equity in the income (loss) of investees, net (102) 320 Income before income taxes 14,729 13,788 14,868 Income taxes (1,663) (4,422) (5,078) 13,066 9,366 9,790 Net income Less: Net income attributable to noncontrolling interests (468) (386) (399) Net income attributable to The Walt Disney Company (Disney) $ 12,598 $ 8,980 9,391 Earnings per share attributable to Disney: Diluted 8.36 $ 5.69 $ Basic 8.40 $ 5.73 $ 5.76 Weighted average number of common and common equivalent shares outstanding Diluted 1,507 1.578 1,639 Basic 1,499 1,568 1,629 Dividends declared per share $ 1.68 $ 1.56 1.42 See Notes to Consolidated Financial Statements CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) 2018 2017 2016 $ $ 13,066 3,011 (560) (1,573) 102 775 (523) 393 441 9,366 2,782 (289) 334 (320) 9,790 2,527 (26) 1,214 (926) 788 799 (1,075) OPERATING ACTIVITIES Net income Depreciation and amortization Gains on acquisitions and dispositions Deferred income taxes Equity in the income) loss of investees Cash distributions received from equity investees Net change in film and television costs and advances Equity-based compensation Other Changes in operating assets and liabilities: Receivables Inventories Other assets Accounts payable and other accrued liabilities Income taxes Cash provided by operations (101) 364 393 503 674 (720) (17) (927) (393) 186 (443) 107 (5) (52) (368) 208 12,343 235 (598) 14.295 INVESTING ACTIVITIES Investments in parks, resorts and other property Acquisitions Other Cash used in investing activities (4,465) (1,581) 710 (5,336) (3,623) (417) (71) (4,111) (4,773) (850) (135) (5,758) FINANCING ACTIVITIES Commercial paper borrowings/(payments), net Borrowings Reduction of borrowings Dividends Repurchases of common stock Proceeds from exercise of stock options Contributions from noncontrolling interest holders Other Cash used in financing activities (1,768) 1,056 (1,871) (2,515) (3,577) 210 399 (777) (8,843) 1,247 4,820 (2,364) (2,445) (9,368) 276 (920) 6,065 (2,205) (2,313) (7,499) 259 (1.142) (8,959) (607) (7,220) Impact of exchange rates on cash, cash equivalents and restricted cash (25) (123) Change in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, beginning of year Cash, cash equivalents and restricted cash, end of year 4,064 4,155 (696) 4,760 4,064 4,725 4,760 $ Supplemental disclosure of cash flow information: Interest paid Income taxes paid 631 466 3.801 $ S 395 4,133 See Notes to Consolidated Financial Statements