Once the ratio analysis is completed answer the following questions.... Here is the ratio analysis for Disney, please answer the following questioned based off this analysis. Please answer in paragraph form.

Disney Profitability Ratios

Year 2012

Return on equity = Net income after tax Common stockholders equity

6,173,000 39,759,000 = .16

Return on assets = Net income after tax total assets

6,173,000 74,898,000 = .08

Gross profit margin = Sales Cost of goods sold Sales

42,278,000 23,468,000 = 18,810,000

18,810,000 42,278,000 = .44

Operating profit margin = Operating profits sales

Operating profit is total sales total expenses

42,278,000- (33,415,000) = 8,863,000

8863 42,278,000 = .21

Net profit margin = Net income after tax sales

6,173,000 42,278,000 = .15

Year 2013

Return on equity = Net income after tax Common stockholders equity

6,636,000 45,429,000 = .15

Return on assets = Net income after tax total assets

6,636,000 81,241,000 = .08

Gross profit margin = Sales Cost of goods sold Sales

45,041,000 25,034,000 = 20,007,000

20,007,000 45,041,000 = .44

Operating profit margin = Operating profits sales

Operating profit is total sales total expenses

45,041,000 - (35,591,000) = 9,450,000

9,450,000 45,041,000 = .21

Net profit margin = Net income after tax sales

6,636,000 45,041,000 = .15

Year 2014

Return on equity = Net income after tax Common stockholders equity

8,004,000 44,958,000 = .18

Return on assets = Net income after tax total assets

8,004,000 84,186,000 = .10

Gross profit margin = Sales Cost of goods sold Sales

48,813,000 26,420,000 = 22,393,000

22,393,000 48,813,000 = .46

Operating profit margin = Operating profits sales

Operating profit is total sales total expenses

48,813,000 - (37,273,000) = 11,540,000

11,540,000 48,813,000 = .24

Net profit margin = Net income after tax sales

8,004,000 48,813,000 = .16

Disney Liquidity Ratios

Year 2012

Current ratio = current assets current liabilities

13,709,000 12,813,000 = 1.07

Quick Ratio = Current assets Inventory Current liabilities

13,709,000 1,537,000 = 12,172,000

12,172,000 12,813,000 = .95

Year 2013

Current ratio = current assets current liabilities

14,109,000 11,704,000 = 1.21

Quick Ratio = Current assets Inventory Current liabilities

14,109,000 1,487,000 = 12,622,000

12,622,000 11,704,000 = 1.08

Year 2014

Current ratio = current assets current liabilities

15,176,000 13,292,000 = 1.14

Quick Ratio = Current assets Inventory Current liabilities

15,176,000 1,574,000 = 13,602,000

13,602,000 13,292,000 = 1.02

Disney Activity Ratios

Year 2012

Inventory Turnover: Cost of Goods sold= $23,347 (million) Inventory=$2,213 (million)

23347/.6

Inventory Turnover: Cost of Goods sold=$23,468 (million)/Inventory $1,537 (million) .3

Accounts Receivables Turnover: Sales= $ 42,278(million) Accounts Receivable = $6,540(million)

42278/.5

Total Asset Turnover: Sales=$42,278(million) Total Assets= $74,898 (million)

42,278/74,898=.6

Average Collection Period: Receivables Turnover= 6.5

365/6. days

Year 2013

Inventory Turnover: Cost of Goods sold= $23,347(million) Inventory= $2,121(million)

23347/.0

25,034/.8

Accounts Receivables Turnover: Turnover: Sales= $45,041(million) Accounts Receivable =$ 6,967(million)

45041/.5

Total Asset Turnover: Sales=$45,041(million) Total Assets=$81,241 (million)

45041/.6

Average Collection Period: Receivables .5

365/6. days

Year 2014

Inventory Turnover: Cost of Goods sold= $26,420 (million) Inventory=$2,635(million)

$1,574(million)

26420/2,.0

26420/1,.8

Accounts Receivables Turnover: Turnover: Sales= $48,813(million) Accounts Receivable =$9,043(million)

$7,822(million)

48813/.4

48813/.2

Total Asset Turnover: Sales= $48,813 (million) Total Assets= $84,186 (million)

48813/.6

Average Collection Period: Receivables .4

365/5. days

Disney Market Ratios

Year 2012

EPS: Net income Available to common stockholders= $5,682,000 number of shares outstanding .839 (million)

5682000/.1

PS: Market price of common .6 Earnings per .1

PE VS PS 52.6/3..0

Market to Book: Market Value per share= $49.15 Book Value per Share=$22.09

49.15/22..22

Year 2013

EPS: Net income Available to common stockholders= $6,136,000 number of shares outstanding .8 (million)

6136000/.4

PS: Market price of common .7 Earnings per .4

PE VS PS 64.7/3..0

Market to Book: Market Value per share= 74.35 Book Value per .24

74.35/25..95

Year 2014

EPS: Net income Available to common stockholders=$7,501,000 number of shares outstanding .7 (million)

7501000/.4

PS: Market price of common stock= 89.7 Earnings per .4

PE VS PS 89.7/4..4

Market to Book: Market Value per share=$92.89 Book Value per Share=$26.45

92.89/26..51

**1. Does the firm have any problem areas that you would investigate further if you were a manager?

**2. Are there any other specific pieces of information that you would request from your management team with regards to this firm? If so, why?

**3. Would you invest money in this firm based on your analysis