Selected data for The Walt Disney Company appear below (in millions).

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?

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%