Question
Return on Investment The Walt Disney Company has four profitable business segments, described as follows: Media Networks: The ABC television and radio network, Disney channel,
Return on Investment
The Walt Disney Company has four profitable business segments, described as follows:
- Media Networks: The ABC television and radio network, Disney channel, ESPN, A&E, E!, and Disney.com
- Parks and Resorts: Walt Disney World Resort, Disneyland, Disney Cruise Line, and other resort properties
- Studio Entertainment: Walt Disney Studios, which releases films by Pixar Animation Studios, Marvel Studios, Disney/Lucasfilm, and Touchstone Pictures
- Consumer Products: Character merchandising, Disney stores, books, and magazines
Disney recently reported sector income from operations, revenue, and invested assets (in millions) as follows:
| Income from Operations | Revenue | Invested Assets | ||||
| Media Networks | $6,625 | $24,500 | $35,899 | |||
| Parks and Resorts | 4,469 | 20,296 | 30,670 | |||
| Studio Entertainment | 2,980 | 9,987 | 17,154 | |||
| Consumer Products | 1,632 | 4,651 | 8,793 | |||
a. Use the DuPont formula to determine the return on investment for the four Disney sectors. Round Profit Margin, ROI to one decimal place and Investment Turnover to two decimal places.
| Profit Margin | Investment Turnover | ROI | |
| Media Networks | |||
| Parks and Resorts | |||
| Studio Entertainment | |||
| Consumer Products |
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Auditing And Other Assurance Services
Authors: Alvin Arens, James Loebbecke, W Lemon, Ingrid Splettstoesser
9th Canadian Edition
0130091243, 978-0130091246
