The Walt Disney Company reported the following in its 2016 annual report (in millions):

Required:

1. Note that in all three years, net cash provided by operating activities is greater than net income. Given the above information and what you know about the Walt Disney Company from your own personal observations, provide one reason that could explain the sizable difference between net income and net cash provided by operating activities.

2. Based solely on the results reported above for the three years, did Walt Disney Company need external financing to purchase parks, resorts, and equipment during these years?

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2014 2015 2016 $ 9,400 $ 8,400 $7,500 Net income Net cash provided by operating activities Purchase of parks, resorts, and equipment 13,200 10,900 (4,300) 9,780 (3,300) (4,800)