Financial Statement Analysis FORM

To start, gain access to the companys DISNEY 10-K report from the SEC website (www.sec.gov) (.gov indicates it is a government site.)

Go to www.sec.gov

On the dark ribbon, click on Filings

From the drop-down list, click on EDGAR-Search & Access

On the left column, click on Company Filings

Enter the company name (Disney or the trading symbol DIS)

Under Selected Files, click 10-K

Locate the most recent 10-K ANNUAL report. This is dated November 29, 2022.

Please answer the questions below

Provide Brief but Complete Answers Following the Writing Style Guidelines included in this assignment directions.

General information

In what city and state are the corporate headquarters located? (This might not be the state of incorporation)

On what day of the year does its fiscal year end?

Who is the corporations independent auditor found in the Report of Independent Registered Public Accounting Firm?

Do the auditors believe the financial statements were presented fairly? Answer Yes or No.

What statements included in the auditors opinion (Report of Independent Registered Public Accounting Firm) support your conclusion above? Provide the specific words in quotation marks.

For how many years (answer 1 or 2 or 3 or 4 etc.) does the 10-K report present the following:

Balance sheets? a.k.a. consolidated balance sheets

Income statements? a.k.a. consolidated statement of earnings, consolidated statement of operations

Cash flow statements? a.k.a. consolidated statements of cash flows

Income Statement, a.k.a. consolidated statement of earnings consolidated statement of operations

Did the companys revenue (a.k.a. sales and sales revenue) increase or decrease over the last year? Answer Increase or Decrease.

Did the companys cost of goods sold increase or decrease over the last year? Answer Increase or Decrease.

Did the companys net income or net loss increase or decrease over the last year? Answer Increase or Decrease.

What method of depreciation does the company use?

What amount is reported as depreciation expense for the current year?

Is cash used for this depreciation expense?

Balance Sheet

Did the companys total assets increase or decrease over the last year? Answer Increase or Decrease.

What was the largest asset?

Identify the balance sheet accounts that were most significant in explaining the changes in total assets for the corporation.

Cash Flow Statement

Did the company have a cash inflow or outflow from Operating Activities in the most recent year? Answer Inflow or Outflow.

Which statement did you use to find this?

What was the largest item in Operating Activities (either a use of cash or source of cash report the largest)?

Did the company have a cash inflow or outflow from Investing Activities in the most recent year? Answer Inflow or Outflow.

What was the largest item in Investing Activities (either a use of cash or source of cash - report the largest)?

Did the company have a cash inflow or outflow from Financing Activities in the most recent year? Answer Inflow or Outflow.

What was the largest item in Financing Activities (either a use of cash or source of cash - report the largest)?

Ratio Analysis

Profitability Ratios (Complete the Excel Spreadsheet to answer the questions below.)

Enter from your Excel spreadsheet the net profit margin ratio for the latest two years here.

Explain its meaning.

Enter from your Excel spreadsheet the company's gross profit percentage for the latest two years here.

Explain its meaning.

Enter from your Excel spreadsheet the fixed asset turnover ratio here.

Explain its meaning.

In comparison to the previous year, has the corporation improved its ability to generate a profit? Answer Yes or No.

Justify your answer with the profitability ratios calculated above.

What is the basic earnings per share for continuing operations as it appears in the income statement for the past two years?

Liquidity Ratios

Enter from your Excel spreadsheet the companys receivable turnover ratio for the last two years here.

Explain its meaning.

Enter from your Excel spreadsheet the inventory turnover ratio here.

Explain its meaning.

Enter from your Excel spreadsheet the company's current ratio for the last two years here.

Explain its meaning.

Is the current ratio adequate?

What amount of inventory does the company have at the end of the year?

Did it increase or decrease over the last year? Answer Increase or Decrease.

Solvency Ratios

Enter from your Excel spreadsheet the debt-to-asset ratio for the last two years here.

Explain its meaning.

How did the debt position change over the last year?

Would potential lenders prefer the debt to total assets ratio to be larger or smaller? Answer Larger or Smaller.

Why?

Enter from your Excel spreadsheet the times interest earned for the past two years here.

Explain its meaning.