Selected data for The Walt Disney Company appear below (in millions). Examine the differences between net income,
Question:
Examine the differences between net income, cash flow from operations, and EBITDA for The Walt Disney Company. Comment on the relations among these series over time. Why does cash flow from operations exceed net income? What adjustments contribute to this pattern? Is this typical or unusual? Why is EBITDA so much higher than both net income and cash flow fromoperations?
Transcribed Image Text:
Year 4 Year 3 Year 2 Year l $2,345 1,267 $1,236 $1,169 Net income Conversion of net income to cash flow from operations: Non-working capital adjustment 2,076 (51) $4,370 S5,554 13.6% 2,124 (245) $3,048 $3,759 (0.6%) 1,370,077 Working capital adjustments 264 (27) Cash flow from operations EBITDA Growth rate in revenues $2,901 $%2,286 $3,919 0.6% $4,106 8%
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (15 reviews)
Net income and EBITDA show a similar pattern over time with small increases between Year 1 and Year ...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Financial reporting, financial statement analysis and valuation a strategic perspective
ISBN: 978-0324789416
7th Edition
Authors: James M Wahlen, Stephen P Baginskl, Mark T Bradshaw
Question Posted:
Students also viewed these Accounting questions
-
Selected data for The Walt Disney Company appear here (in millions): Prepare a graph similar to Exhibit 3.3 that shows net income, net income plus Type 1 adjustments, cash flow from operations, and...
-
The 2007 financial statements for The Walt Disney Company can be found on the Internet. 1. Using the financial statements and information contained in the notes, determine how much income tax expense...
-
The 2004 financial statements for The Walt Disney Company can be found on the Internet. 1. Using the financial statements and information contained in the notes, determine how much income tax expense...
-
What is wrong with the following variable declarations? If wrong, explain. If correct (nothing wrong), write "correct". double 1st_var = 10; int var2; int var3 = var2; string name="var3"; double...
-
On January 1, 2014, Palmero Company purchased an 80% interest in Santos Company for $2,800,000, at which time Santos Company had retained earnings of $1,000,000 and capital stock of $500,000. On the...
-
For each basic block given below, rewrite it in single- assignment form, and then draw the data flow graph for that form. a) r = a+b-c; s=2*r; t=b-d; r=d+e; (b) w = a-b+c; x=w-d; y = x - z; w= a+b-c;...
-
Why might it take time for the benefits of supply-side policies to become evident?
-
Suppose that you are a collector of antique cars and you need to purchase spare parts for a 1938 engine. These parts are not made anymore and are scarce. You discover that Beem has the spare parts...
-
Read the below and answer the questions: A company is considering acquiring a new machine that costs R 5 million. The machine will have a useful life of five years and is expected to generate...
-
1. Use descriptive statistics to summarize the data collected by Fresnos Manager of Product Quality for each of the 5 randomly selected dice. Based on these descriptive statistics, what are your...
-
Three years of combined data for two firms appear below (in millions). One of these firms is eBay, an online retailer with a three-year growth in sales of 337.3 percent, and the other is TJX...
-
The Coca-Cola Company (Coca-Cola), like PepsiCo, manufactures and markets a variety of beverages. Exhibit 3.22 presents a statement of cash flows for Coca-Cola for 2006 to 2008. Required Discuss the...
-
A firm believes it can generate an additional $250,000 per year in revenues for the next 5 years if it replaces existing equipment with new equipment that costs $240,000. The firm expects to be able...
-
An oil company refines crude oil valued at $62/barrel and sells it to motorists at its retail outlets. The price is $2.90/U.S. gallon ($0.77/L). On a per unit basis (e.g., per gallon or per liter),...
-
Today is March 2, 2021.You want to sell 2 call options on shares of XXX stock which will allow the holder to buy a share of stock at $60 a share.One option will mature in 3 months.The other will...
-
1. Here is a code written using a while loop: int sum(int n) ( s=0; 1 0; while (i
-
XYZ clinic has recently expanded its services to include a facility solely dedicated to COVID-19 testing. Jean Grey, the clinic manager, has been tasked with estimating the annual costs for the...
-
A diver has 1.1 L of air in her lungs at an air temperature of 27.6C and a pressure of 1.02 atm. What is the volume (in L) of air in her lungs after she dives, while holding her breath, to a depth of...
-
What is the purpose of the $match variable? Refer to the PERL script shown in Figures 8.1 and 8.2. C:\Users ex h\Documents\Book SearchForTerms.prl - Notepad++ File Edit Search View Encoding Language...
-
Perform the indicated operations. In designing a cam for a fire engine pump, the expression is used. Simplify this expression. (3) (3 4 32
-
Create a scenario in which this text data might be helpful to a company. Then, consider which data sources (e.g., customer service transcripts, customer-generated social media posts, etc.) would be...
-
Accounting Treatment of Purchase Discounts Shawnee Corp., a household appliances dealer, purchases its inventories from various suppliers. Shawnee has consistently stated its inventories at the lower...
-
Accounting Treatment of Purchase Discounts Shawnee Corp., a household appliances dealer, purchases its inventories from various suppliers. Shawnee has consistently stated its inventories at the lower...
-
Accounting Treatment of Purchase Discounts Shawnee Corp., a household appliances dealer, purchases its inventories from various suppliers. Shawnee has consistently stated its inventories at the lower...
-
3. The Alice Company has estimated costs for the following monthly production levels: Production volume (units) Cost A Cost B Cost C Cost D Cost E Cost F Cost G Cost H Total manufacturing costs...
-
ted eted eted eted (20%) Problem 3: Consider a circuit shown in the figure. Ignore the internal resistances of the batteries. R3 Randomized Variables A LL F E = 46 V 82=48 V R = 8Q R = 8Q R B E...
-
A 40.0-g object connected to a spring with a force constant of 50.0 N/m oscillates with an amplitude of 6.00 cm on a frictionless, horizontal surface. (a) Find the total energy of the system. mJ (b)...
Study smarter with the SolutionInn App