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Walt Disney Company is preparing its financial statements for 2023. The financial data includes: Transactions (in $ millions) Amount Cash Sales 1,200,000 Credit Sales 600,000
Walt Disney Company is preparing its financial statements for 2023. The financial data includes:
Transactions (in $ millions) | Amount |
Cash Sales | 1,200,000 |
Credit Sales | 600,000 |
Cash Payments | 650,000 |
Accounts Receivable | 180,000 |
Production Costs | 450,000 |
Estimated Legal Settlements | 100,000 |
Requirements:
- Prepare Walt Disney Company's income statement for 2023 using the modified cash basis.
- Calculate net income considering the conservatism principle.
- Discuss the impact of estimated legal settlements on financial statements.
- Analyze the treatment of accounts receivable and production costs under the conservatism principle.
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